report by BlackRock
Results for ""
Policy and Regulatory Commentary
Working on “Political Time”
As all of Washington – and, in fact, the United States – awaits news from the Capitol confirming that leaders in Congress have formally reached an agreement on another COVID relief bill, an infuriating truth is once again resurfaced.
Fixed Income Insights
2021 Market GPS: Fixed Income Outlook
Market behaviour in 2020 was all about flows: liquidity flooding the markets, a disease travelling through the population, global supply chains reconfiguring, and technology streaming work and entertainment to the masses. Jim Cielinski, Global Head of Fixed Income at Janus Henderson, explains that fixed income is sensitive to flows, and their direction in 2021 will help determine how the asset class navigates the year ahead.
Policy and Regulatory Commentary
A Team of Rivals? No
“To me it appears evident that an executive ministry composed of men with the qualifications I have described would speedily restore the credit of government abroad and at home, would induce our allies to greater exertions in our behalf, would inspire confidence in monied men in Europe as well as in America to lend us ⟨those⟩ sums of which it may be demonstrated we ⟨stand⟩ in need from the disproportion of our national wealth to the expenses of the War.”
Policy and Regulatory Commentary
Congress’ Cup Runeth Over
Last week, we discussed midnight regulations – last-minute rulemakings rushed through federal agencies by departing presidents in the twilights of their terms.
Fixed Income Insights
The Shape of Credit
This piece is approved to use with clients.
In this Q&A, Portfolio Managers Jason England, Nick Maroutsos and Dan Siluk discuss the factors shaping credit markets, from central bank support to potential resilience from financials.
Key Takeaways
- Corporate earnings and cash flows are under strain, but while defaults are likely to increase, they should continue to be largely contained to sub-investment-grade issuers.
- Massive and proactive central bank support measures have injected confidence into markets, but this does not preclude sporadic bouts of future volatility and warrants a selective approach.
- We believe more resilient opportunities are likely to be found in higher-quality, shorter-dated investment-grade issues and continue to favor financial sector bonds and corporates with defensive attributes.
Fixed Income Insights
Building Bond Portfolios on a Strong Housing Market
This piece is approved to use with clients.
Conventional wisdom would suggest that rising unemployment would have discouraged consumers from making large contractual obligations like buying a new home, but the pandemic has affected the way many Americans think about housing. Portfolio Managers John Kerschner and Nick Childs discuss why this is happening and what it could mean for bond investors.
Fixed Income Insights
A Mostly Benign Outlook for U.S. Inflation
This piece is approved to use with clients.
The stabilization of U.S. economic growth amid unprecedented fiscal and monetary stimulus has raised questions about the likelihood of inflation returning. Global Head of Fixed Income Jim Cielinski explains why he does not see significant risk of sustained higher inflation materializing in the next few years – but cautions that short-term spikes are possible and that investors should evaluate the diversification that their fixed income portfolios provide.