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Bloomberg reports that “a deep divide is opening up as investors focus their hopes on commodity exporters in the Middle East and Latin America” as they try to predict how reverberations of Russia’s invasion of Ukraine will play out in commodities markets. A major concern for investors and policymakers alike is how to keep inflation in check, especially as food prices rise quickly. Voya Investment Management Head of Emerging Markets Fixed Income Jean-Dominique Butikofer said of the market outlook, “Rising inflation, and more particularly food inflation, are giving emerging-market ministers of finance and central bankers growing headaches,” with commodity importers likely to see their budgets constrained if they are forced to subsidize food prices.

Bloomberg reports on the impact for developing markets of the rapid rise in inflation and war in Ukraine following the worst quarter for emerging-market dollar bonds in 24 years. The article notes that the rise in inflation and increasingly large potential rate hikes being considered by the Fed are drawing investors to commodity exporters in the Middle East and Latin America, and that this will likely make it more difficult for lower-income and commodity-importing nations to borrow as costs increase. The war in Ukraine has also made lenders more risk-averse, which is also likely to put pressure on borrowers. Goldman Sachs’s Andrew Tilton and Kamakshya Trivedi explained “The economic costs of Russia’s invasion of Ukraine and the resulting sanctions are likely to be both significant and highly asymmetric,” while Jean-Dominique Butikofer, Head of emerging markets fixed income at Voya Investment Management said “Rising inflation, and more particularly food inflation, are giving emerging-market ministers of finance and central bankers growing headaches.” He also “warned that the need to subsidize food prices will hit the budgets of commodity importers, especially as the risk of social unrest grows alongside households seeing their purchasing power diminish.”

Voya IM CEO Christine Hurtsllers spoke with Ignites editor Emily Laermer about how Voya educates both their advisors and their clients. Hurtsellers says it is important for Voya advisors to “have good education, good material to then help their client base.” In order to give their clients the best advice, Hurtsllers says Voya is “spending more time on education and educational resources that advisors need in order to make some of this more understandable and easier for their clients.”

Appearing on Bloomberg TV Voya Fixed Income CIO Matt Toms spoke on the market’s reactions to Federal Reserve Chairman Powell’s comments on how the Fed is planning to fight inflation. Toms said the market is currently reacting to a “calm, measured” reaction from the Fed as Chairman Powell announced the doubling of tapering and expected rate hikes. Toms said the market is still expecting inflation to be “moderating” over the next few years. Toms believes that while it is hard to predict an exact timeline, he believes the Fed’s current timeline of ending tapering in March and beginning rate hikes is a good estimate. Minus a sharp rise in inflation that would deserve a more harsh reaction, Toms believes the current plan from the Fed is good for the equity market. Toms also believes that increasingly higher prices will push consumer spending down, which will get rid of some of the “inflationary push.”

Ignites provides the transcript for an interview with Voya Investment Management CEO Christine Hurtsellers. When asked about the “tech trends that have most impacted mutual fund distribution,” Hurtsellers said, “It really goes to customized portfolios, customized advice and model portfolios. So one of the things that we’ve done is developed a partnership with a large wealth manager where we provide model portfolios for less-high-net-worth individuals. So think about people that have fewer assets.”

The Wall Street Journal reports that investors seeking higher yields have pushed fixed-income sales to record highs, especially for riskier debt offering higher payouts. The uptick in inflation has pushed price increases above average junk bond yields, an inversion of the way investors traditionally think of the bond market. Voya Investment Management Chief Investment Officer Matt Toms believes that investors are looking more at each individual issuer rather than categories, saying, “It is now about which companies can manage supply and pricing pressures and less so whether they can survive through the pandemic.”

Ignites spoke with Voya Investment Management CEO Christine Hurtsellers on the impact of the pandemic on Voya’s distribution and sales teams. Hurtsellers said that, as the pandemic has carried on, it has made establishing relationships with clients “harder and harder.” At the same time, Hurtsellers said the new challenges “massively accelerated our digitization.”

Voya Investment Management has named Vincent Costa Co-Chief Investment Officer for Equities effective Jan. 1, according to a statement. Costa “will work closely with Michael Pytosh, who has been CIO of equities since 2017 and head of equities since 2010, the release noted.” Voya spokesman Kristopher Kagel “confirmed by email that Mr. Costa will also retain his current positions as head of the quantitative equity team and portfolio manager in Voya’s large-cap value strategy group.” Voya “also named James Dorment and Kristy Finnegan as co-heads of fundamental research in the equities platform, both newly created positions. Both Mr. Dorment and Ms. Finnegan will keep their portfolio management responsibilities on the value and growth strategies teams, respectively, the release added.”  

MarketWatch reports that airlines are starting to use frequent flyer programs as “collateral for bondholders.” Airlines are making the pledges against their programs because they can generate cash by selling frequent flyer miles to credit card issuers, who, in turn “offer them as part of their reward programs to their customers.” The article says that “the revenues earned from selling the miles” to credit card issuers “are much higher than the cost of any flight travel redeemed by passengers.” Voya Investment Management Fixed Income Portfolio Manager Cliff Andrus said, “The customer doesn’t realize the margins are quite high.” According to the article, “Even with reduced demand for air travel, the mileage programs still hold their value.” Andrus said, “You’re going out to spend money on your credit card, whether or not you’re flying.” According to some analysts, using frequent flier programs as collateral “represents a desperate move by airlines that are looking for any assets that they can pledge.”

Pensions & Investments reports Voya spokesperson Kristopher Kagel confirmed that Voya Investment Management Managing Director and Head of Product Management and Development Bill Golden assumed Stephen Dougherty’s responsibilities as a managing director and head of structured assets and alternatives. Pensions & Investments mentions that “Dougherty was named global head of product at Aegon Asset Management.”