Have monetary policy shifts changed the rules for fixed income?
Fixed income products - from publicly traded government bonds and corporate credit to alternative debt and structured instruments - have come into focus in 2022. And for good reason: after more than a decade, central banks have shifted their easy monetary policy in order to fight off inflation. However, higher interest rates and slimmer balance sheets have put pressure on fixed income markets, creating volatility and bringing up questions of liquidity and default risk.
After a year of higher interest rates and market volatility, can commercial mortgages offer investors what they need to protect and grow their money?
The global loan market has not escaped this year's storm of volatility caused by major central banks' shift in monetary policy.
Supported by low interest rates, debt has been the main fuel of economic growth for a long time. The world now finds itself with more debt than its output can justify.
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Securitised credit can offer protection during uncertain times. It can bolster bond portfolios, providing diversification.
Parts of Europe remain troubled by large amounts of debt. What does this mean for these economies and, in turn, for investors in these areas?
It could be argued that sovereign debt crises are a direct product of the current monetary system of fiat currency and central bank policy.
Looking back at 2022, a key question which investors need to answer is how liquid the "most liquid" debt market in the world (the U.S. Treasury market) has really been?