Voya Investment Management Head of Multi-Asset Design Amit Sinha writes in MarketWatch that large public pension funds, which currently have over $1 trillion in unfunded liabilities, could be in for a challenging period ahead as interest rates decline, which is “going to make it harder for these and other pension plans to rely on investment returns alone to meet their obligations to retirees.”
Voya Investment Management Head of Securitized Fixed Income Dave Goodson was quoted by Bloomberg in an article looking at the increased use of asset securitization, which has ramped up in recent months as lower borrowing costs incentivize investment-grade companies to “mortgage virtually all their assets.”
Voya Investment Management CIO Paul Zemsky was on CNBC discussing the recent uptick in market volatility, which could be here to stay. Zemsky believes that investors who have made long-term investment decisions should ride out the volatility, saying, “fundamentals are good, earnings are going to grow, consumers are in great shape, there’s a lot of good things out there in the U.S. economy. Stick with your financial plan and don’t try to trade on day-to-day tweets – you’ll get chopped up.”
Voya Investment Management CIO of Fixed Income Matt Toms spoke with Bloomberg about interest rate expectations and how geopolitics is impacting decision making at the Federal Reserve. Toms said he believes the Fed will cut interest rates three more times, bringing the rate down to 1.5%.
International Financing Review reported a new S&P Global Ratings study has found that the amount of U.S. corporate debt that matures by 2024 now totals $5.2 trillion, though “lower interest rates should make refinancing the debt pile manageable despite an expected slump in economic conditions.”
Voya Investment Management Chief Investment Officer Matt Toms was on CNBC’s Squawk Box discussing recent volatility and where markets are headed. Toms said that Voya believes “U.S. markets are not forecasting a recession. We think that we’re seeing a flight to quality into the dollar and into the U.S. bond market, which still has higher yields than foreign country alternatives.”
CNN Business reports the yield on benchmark 10-year U.S. Treasury bonds fell to 1.75 percent on Monday, the lowest level since October 2016, as investors sought out safe havens. Equity markets were hammered on concerns about the global economy as the U.S./China trade war intensifies and China’s currency fell.
CNBC reports global markets have begun responding to the Federal Reserve’s first interest rate cut since 2008, with U.S. indices down one percent following the news. Voya Investment Management Chief Investment Officer of Fixed Income Matt Toms believes the moves may have been an overreaction, saying, “We would look to the Fed to come out and talk more about the lack of inflation. That should help weaken the dollar, steepen the yield curve.”