For all the gloomy talk about the economy in 2023, stabilizing interest rates could be a bright spot for investors.
Eyes remain firmly on the Federal Reserve, which has engineered a landscape of materially higher real and nominal rates.
The repercussions of US midterm elections will be felt over the coming months and years, not days. The key is how the results are transmitted to the economy, chiefly through monetary and fiscal policy.
Soaring mortgage rates have massively reduced prepayment risk, creating one of the most compelling entry points for GNMA bonds in more than 20 years.
For all the gloomy talk about the economy in 2023, stabilizing interest rates could be a bright spot for investors. But with imbalances lurking in the shadows, 2023 could be the year for higher-quality bonds, select large- and small-cap stocks, and private-market investments.
Eyes remain firmly on the Federal Reserve, which has engineered a landscape of materially higher real and nominal rates.
The repercussions of US midterm elections will be felt over the coming months and years, not days. The key is how the results are transmitted to the economy, chiefly through monetary and fiscal policy.
With many aspects of the US economy in decent shape, we believe spread widening in a recession is likely to be limited. Still, investors no longer need to overreach on risk.
We expect inflation to ease despite a surprisingly high CPI reading for August, allowing the Federal Reserve to temper its aggressive pace of rate increases.
Performance is the focus of Where will the next wave of ESG alpha come from?, shining a light on the difference between divesting “bad ESG” companies vs. including and engaging companies to find those likely to be voted “Most Improved in ESG.”
Listen in as Jim Dorment (head of value and portfolio manager) and Laura Kane (head of ESG research) gather to peel back the layers on key topics facing ESG investors today.
How are E, S and G evolving? takes a look at critical changes in how investors assess each component of environment, social and governance factors. It’s not enough to focus (rightly) on the low-carbon transition—there are issues of labor disruptions caused by the transition to consider as well.
Risks are rising: the Fed must thread a narrowing needle-eye to stop inflation without causing a recession. We’ve lightened equity positioning and reduced risk within fixed income segments of portfolios.
These are the six major themes influencing positioning across our fixed income portfolios for the second half of 2022.
