Fixed Income

Investment Insights by our experts and thought leaders

New Zealand's New Centre-Left Government Makes for Uncertain Times

Just as politics in other developed countries have recently taken on a more populist and/or anti-capitalist tone, so too has New Zealand’s.

A Pickup in the Chinese Economy – What to watch

To help bridge the gap between the perceived unreliability of Chinese statistics and the importance of analysing the world’s second largest economy, we look for measures which have less potential to be manipulated.

Will Investors Be Ready When Chinese Bonds Go Global?

Most bond index providers have started to recognize China’s financial market liberalisation and reform efforts. We think it is only a question of time before they are included in the main benchmark indices.

Asia High Grade Credit – A better European approach to Emerging Market Debt

A separate allocation to Asia IG offers European investors a way to mitigate risk within their EMD exposure.

Asian Fixed Income Monthly Outlook - October 2017

US Treasuries declined in September, prompted by the possibility of a rate hike by the Federal Reserve in December and Trump's tax reform bill being passed by Congress.

The Rise of Chinese FDI into ASEAN

Our senior fixed income portfolio manager in Singapore explains why he is bullish on ASEAN currencies for the long-term.

House View: Global Economic and Equity Reflation Despite Less Dovish Central Banks

Despite geopolitical risks and less dovish central banks, the Global Investment Committee remains moderately optimistic about the global economy and equity markets, while being cautious on global bonds.

Germany's Election Results – What now?

Despite the uncertainty surrounding the time it will take before the formation of a new government, we do not think there is risk of major policy change in Germany. The election outcome, however, will likely weigh on the aspirations of France’s Macron for deeper Eurozone integration.

Asian Fixed Income Monthly Outlook - September 2017

The US Treasury (UST) market grinded higher in August. Rising tensions in the Korean peninsula and a lack of direction from the US Federal Reserve and the European Central Bank on the outlook for monetary policy put pressure on US Treasury yields.

Germany's Election Should Be Supportive

Our London-based Global Credit Portfolio Manager lays out the scenarios of the upcoming German election and its ramifications for select German credits.

Asian Fixed Income Monthly Outlook - August 2017

US Treasury (UST) yields ended largely unchanged in July following soft US inflation print, dovish comments from the Federal Reserve and expectations of an autumn policy shift from the European Central Bank.

China’s deleveraging – When and how will it end?

China’s dual goals of deleveraging and maintaining strong growth may not necessarily conflict, but they certainly pose a delicate balancing act for the government.

Asia High Grade Credit - A More Selective Approach

The rapid development of the Asia Credit markets provides new opportunities to improve the risk and return profile for investors.

Asian Fixed Income Monthly Outlook - July 2017

US Treasury (UST) yields were range-bound for the most part of June, before surging in the last few days of the month. The US Federal Reserve (Fed) raised interest rates by 25 basis points (bps), despite soft inflation data.

The Global Investment Committee remains moderately optimistic about the global economy and equity markets, while being cautious on global bonds.

ESG and Credit Investing — What does the future hold?

Changing perception of ESG’s performance impact: An active ESG approach is now regarded as a catalyst for outperformance.

Asian Fixed Income Monthly Outlook - June 2017

Better-than-expected US non-farm payroll figures and a more favourable FOMC statement were offset by political uncertainties in Washington. FBI director James Comey's firing and investigations into possible ties between Trump's election campaign and Russia increased concerns of a set-back in the president's economic agenda.

Global Fixed Income & Credit Monthly Outlook - June 2017

The European Central Bank (ECB) has taken its first step towards reducing its stimulus programme by omitting the mention of "lower levels" for interest rates in its forward guidance, even as ECB President Mario Draghi denied that there was any discussion of tapering in the latest policy session.

Asia High Grade Credit - A Safe Haven within Emerging Market Debt

Asia Credit is significant enough as an asset class to be considered separately, and its high grade segment could be a relative safe haven if EMD flows reverse.

On 19 May 2017, S&P upgraded Indonesia’ sovereign rating to BBB- with a stable outlook from BB+ with a positive outlook.