Catching up the curve
Yesterday was a noisy day for the Bank of England (BoE) and European Central Bank (ECB), usually an undesirable situation for market participants.
Insights Topic
UK
UK RMBS floating above the fray
After a relatively quiet period during the closing weeks last year, the primary ABS market has enjoyed a solid start to 2022.
Multi-Sector Bond Quarterly Update – January 2022
A member of the Multi-Sector Bond team discusses market conditions in Q4 2021 and provides her outlook for the new year.
European ABS: Five things to expect in 2022
If 2021 was a bad year for global bond returns, it follows there were few natural shelters to be found within fixed income from the brunt of inflation and rates-driven volatility; the Barclays Global Aggregate Index (a widely used broad measure of bond performance) returned -4.7% in USD terms, while European investment grade credit returned -1.1% despite credit spreads tightening over the course of the year.
Three strategies for beating inflation with bonds
Inflation was the dominant theme across financial markets in 2021, and we think it is likely to be a big driver of returns again in 2022.
Why so quiet at the Bank of England?
It has been a very interesting start to the year in the rates sector of the market.
Specialist lenders lead stacked pipeline in ABS
The first two trading weeks of the year are coming to an end and unlike previous years they have been packed with activity.
UK banks pass the solvency test
As bondholders, we are comforted by all the banks passing such a severe test.
This is as good as it gets for linkers
Against a backdrop of 4.20% year-on-year UK consumer price inflation (CPI), if you got your timing right, linkers (inflation-linked UK government bonds) will certainly have outperformed conventional Gilts by some margin.
Policy, economy and markets must converge in 2022
Shortly after publishing his annual Rodney Blog, TwentyFour CEO Mark Holman sat down with Tom Porter to discuss the biggest calls fixed income investors will have to make in 2022, and explain why he believes the current disconnect between monetary policy, the economy and the markets cannot last for long.
The Rodney Blog 2022: Policy, economy and markets must converge
What we are currently experiencing is a disconnect between monetary policy, the economy and the markets, a disconnect that in our view will struggle to survive much longer.
How swaps can reduce rates risk as we move towards tightening
With rising government bond yield curves one of the biggest concerns for fixed income fund managers going into 2022, Eoin Walsh points to interest rate swaps as one option for reducing the rates risk of a portfolio without impacting its credit exposure.