Our inescapable truths are the economic forces and disruptive forces we think will shape the investment landscape over the years to come.
The recent flare up of risks in Argentina, and other emerging economies, has raised the spectre of a “classic” emerging market currency crisis. Given the improvement in fundamentals which has taken place over recent years, do opportunities remain in emerging market bonds?
The scope of the global corporate bond universe can be a daunting prospect; identifying key investment themes is one way to navigate this landscape and make good investment decisions.
Schroders research, covering four decades of data, shows how different types of bond have performed when rates were rising.
Solid credit fundamentals, a moderate uptick in global economic growth with limited inflationary pressure and a favourable supply-demand balance all point to another good year for high yield bonds.
Global corporate bond valuations are elevated and insufficient to compensate for risk, but there will continue to be selective opportunities to take high conviction positions.