Debt and Credit Outlook

Debt and Credit Outlook - Articles & White Papers

White papers and articles relating to the debt and credit outlook; covering sovereign bonds, corporate bonds, municipal fixed income, high yield and index-linked bonds. Amongst the most popular fixed income research in this section are papers on bond market liquidity risk, in particular studies of global financial market liquidity and surveys of long-term US interest rates (why long-term interest rates are so low, etc). White papers on bond market valuation tend to be well received. For example, an analysis of the valuation of UK index-linked gilts (why are linkers persistently overvalued?) has been a popular paper. As expected, reports which examine the interest rate outlook have proved popular, particularly those seeking to explain the thought-processes at the FOMC, ECB, BoE, MPC et al. Amongst the periodic fixed income outlook documents on the site, perhaps the most popular is the Prudential Fixed Income Quarterly Outlook and the Goldman Sachs Global Fixed Income Outlook. Practical papers for fixed income fund managers have also proved popular, for instance on managing credit and interest rate risk in the current environment, or the implications of negative yields for fixed income funds.
  • Robeco

    Five-Year Expected Returns 2018-2022: Coming of Age (Robeco)

    In this 106-page document, Robeco presents its forecasts for the 5-year expected returns for all major asset classes.

    Robeco strategists aim not to give an accurate, detailed account of what will happen the next five years: they do not profess to know that. They present the broader trends, the averages. This publication includes special topics on secular stagnation; the ...

    • Professional
    • Views: 2527
    Read more
  • BlackRock

    Capital Market Assumptions (BlackRock, 2017)

    The BlackRock Investment Institute publishes capital market assumptions every quarter. We cover two time horizons: long-term equilibrium capital markets assumptions that can be used as key inputs for strategic asset allocation, and five-year assumptions that take into account how we think current economic and market conditions will play out in the medium term.

  • World’s largest hedge fund chief: The economy looks grim in the long-term (May 2017)

    In this blog post, Ray Dalio of Bridgewater Associates discusses the near- and long-term prospects for the global economy. The near term looks good because the economy is now at or near its best, and there no major economic risks on the horizon for the next year or two. The long-term looks scary because there are significant long-term problems (e.g., high debt and non-debt ...

    • Professional
    • Views: 1880
    Read more
  • PineBridge Investments

    2017 Mid-Year Outlook: Great Expectations for Global Growth (PineBridge, June 2017)

    We have seen some surprises in global markets and economies thus far in 2017. The biggest risk to global growth – political risk in Europe – has largely been defanged, but political risk in the US and Latin America is gaining strength. Economies in China and Europe have also surprised on the upside, spurring expectations for more synchronized growth among developed ...

    • Professional
    • Views: 1208
    Read more
  • Royal London Asset Management

    Securitised Bonds: Finding Security in Bond Markets (RLAM, 2017)

    Secured (or securitised) bonds still carry the stigma of the 2008 financial crisis. But stigma often spells opportunity, and the fixed income specialists at RLAM argue that this asset class offers great value for managers who are prepared to get to grips with the documentation underlying individual securities. Not everyone is prepared to do this research, and as a result secured ...

    • Professional
    • Views: 1211
    Read more
  • Schroders

    Long-run asset class performance: 30yr return forecasts (2017-46) Schroders

    Schroders Economics Group produces 30-year return forecasts, on an annual basis, for a range of asset classes. Here they outline the methodology used, which is based on a series of building blocks and estimates of risk premia, and surmise the key conclusions from our analysis. For the first time, this year they are also publishing a wider range of country-specific returns for ...

    • Professional
    • Views: 2323
    Read more
  • Credit Suisse

    The Future of Monetary Policy (Credit Suisse, 2017)

    This Credit Suisse paper looks at the transformative changes central banks in advanced economies have undergone since 2008. The report concludes that the key issue for decision-makers globally remains to consider which fundamental direction monetary policy ought to take next, assessing two alternative scenarios that may evolve: a return to a pre-crisis "normal", or fiscal dominance.

    • Professional
    • Views: 1018
    Read more
  • Federal Reserve Bank of San Francisco

    Measuring the Natural Rate of Interest (John Williams of FRBSF, Dec 2016)

    U.S. estimates of the natural rate of interest – the real short-term interest rate that would prevail absent transitory disturbances – have declined dramatically since the start of the global financial crisis. The authors of this paper find that large declines in GDP trend growth and natural rates of interest have occurred over the past 25 years in the four economies ...

  • BNP Paribas Asset Management

    BNP Paribas Investment Outlook 2017: Beyond the shadow of quantitative easing

    BNP Paribas Investment Partners presents its latest views and expectations. This outlook is designed to help investors prepare for 2017 by setting the scene for a year in which a new landscape awaits: the world's largest economy is coming under new leadership and leading central banks are expected to gear up for either policy tightening ─ specifically in the US ─ or ...

    • Professional
    • Views: 1494
    Read more
  • Invesco US

    Invesco U.S. 2018 Investment Outlook

    The surging markets of the past year have taken place against a backdrop of macro developments whose long-term impact on the world economy has yet to be realized: the UK’s withdrawal from the European Union, potential tax reform in the US, North Korea’s nuclear weapons testing, continued oil price volatility and the outcome of key elections in Germany, France, Iran and ...

  • FTSE Russell

    FTSE Russell China Bond Research Report

    With renminbi (RMB) internationalization remaining slow, the Bond Connect programme—which enables foreign institutional investors to trade securities on a Hong Kong exchange—showed boosted confidence in China’s short-term debt markets this past August. Learn how “more of the same” expectations influenced the recent trading spike, and why the ...

  • JP Morgan - Asset Management

    2018 Long-Term Capital Market Assumptions (JP Morgan AM)

    JP Morgan Asset Management's detailed Long-Term Capital Market Assumptions report is out! Now in its 22nd year, the 2017 edition explores the complex interplay between secular themes, including global aging and technological innovation, and cyclical factors—notably the slow path of policy normalization and elevated equity valuations—that will influence asset returns ...

  • QMA

    Q4 2017 Outlook & Review (QMA)

    • 24 Oct 2017
    • Company: QMA

    How much longer can the US expansion last? At 96 months, the current recovery is already one of the longest on record. Another year and half and it will break the all-time mark set by the banner expansion of the 1990s. Still, based on the indicators we monitor most closely for recession risk, QMA now considers the odds of a downturn before the end of 2018 to be low. As QMA's Q4 ...

  • Eaton Vance Institutional

    Emerging-market debt: Navigating the allocation dilemma (Eaton Vance Institutional, Sept 2017)

    Positive fundamental changes in emerging markets over the past 10-15 years, along with robust economic growth and the proliferation of emerging-market debt (EMD) indices, have helped transform EMD into a mainstream asset class. Growing interest in EMD has led to increased resources dedicated to these assets and expanded access for investors, which, in turn, has added to the ...

  • Fidelity International

    Investment Outlook Q4 2017: Braver for longer (Fidelity International)

    This paper provides Fidelity International's outlook for global equities, bonds, and alternatives. The authors believe that the bull market is still intact but is now in its last phase. Solid global growth and robust earnings growth are supporting stocks. However, pockets of rich valuations are becoming a concern in a range of asset classes.

  • Fidelity International

    The Draghi Put: Five years in Five Charts (Fidelity International, 2017)

    Sometimes, a very short sentence can have an enormous effect on financial markets, especially if the person speaking is ECB president Mario Draghi and it is the height of the eurozone crisis. Draghi gave markets an iconic show of commitment and political will. But what did it take, and has it worked? Fidelity offers five charts which summarise the progress of the last five years, ...