The Southgate bond strategy – no subs in the second half
For any fixed income investors that follow the England football team, the plan for H2 2024 may feel somewhat familiar – no substitutions in the second half.
Insights Topic
UK
Euro banks well prepared as Basel marathon enters final stretch
The global financial crisis was a seismic shock to banking systems globally, and triggered a regulatory marathon with banks having to adapt to a far stricter set of rules (known as Basel III) set out by the Basel Committee on Banking Supervision (BCBS).
August cut hopes fade despite BoE’s inflation bullseye
The latest UK inflation figures will bring some relief for consumers, but beneath the headline figure the Bank of England’s (BoE) policymakers face a more complex picture that suggests interest rate cuts may still be some way off.
CPI and FOMC post mortem
Consumer Price Index (CPI) inflation as an entrée was well received by the diners, prompting a 15 basis points (bps) rally in the 10-year Treasury. The main course though, was met with some adverse critiques as the Federal Open Market Committee (FOMC) delivered a slightly more hawkish dot plot than expected.
Global headlines aplenty but trends continue
For the fixed income fanatics amongst us, June was always going to be one for the books with all three of the major central banks meeting, elections, and continued data.
Bank analysis takes more than one ratio
We do not usually comment on press articles, but we were all quite surprised to read a piece on Bloomberg titled “A fragile banking system won’t make Europe stronger”.
In the spotlight: European Parliament election
When market participants were asked at the end of last year to enumerate the main risks investors would face in 2024, the vast majority of those surveyed counted politics and elections amongst the top factors to consider for the unrewarding task of forecasting total returns for major asset classes over the following twelve months.
The duration deliberation - to extend or not to extend?
TwentyFour Asset Management’s Chris Bowie, takes a closer look at how he is thinking about duration within fixed income portfolios and shows how following conventional wisdom on duration might prove costly for some investors this year.
ABS and CLOs break 2.0 issuance records
The European asset-backed securities (ABS) market saw a record issuance last week with €5bn of primary issuance.
What's instore for the CPI release?
The most important event this week is likely to be this Wednesday’s US Consumer Prices Index (CPI) release.
Don't miss out on scarcity premium in AT1s
The first four months of this year have seen €11.6bn in gross Additional Tier 1 (AT1) issuance from European banks, across euros, dollars and sterling markets.
Don't forget about money supply measures M1 and M2
Money supply measures such as M1 and M2 enjoyed a relatively brief period of fame and glory just after the pandemic.