Jackson Hole and Fixed Income Markets

Inflation, Central Banking, and Fixed Income Primers

The Jackson Hole Economic Symposium is an annual event held in Wyoming for leading economists and central bankers. The Federal Reserve Chairman typically delivers the headline speech at the event, providing additional colour on the economic outlook and their monetary policy stance. However, this year Fed Chair Jerome Powell's speech served more to quell recent hawkish sentiment than to announce significant changes in U.S. monetary policy.

Still, speeches at this conference are heavily scrutinised by the media, economists, and the global investment community. What follows are several reviews of this year's Jackson Hole conference, explanations of what it revealed about current macroeconomic conditions, reviews of central banking activity and inflation dynamics, and some primers on fixed income markets.

FIXED INCOME PRIMERS

Quantitative Credit (Man Group, 2021)

This in-depth, 45-page primer on quantitative credit leads the reader through a history of quant credit strategies, risk management and portfolio construction practices within credit portfolios, the application of style factors to fixed income analysis, and more.

What Are U.S. Agency CMBS? (Invesco, Aug 2021)

For compliance reasons, this paper is only accessible in certain geographies

Invesco's primer on U.S. Agency CMBS (commercial mortgage-backed securities) considers the post-GFC growth of this market, issuance levels, and the characteristics of these bonds.

Opportunities in the Sponsor-Less SME Loan Market (Federated Hermes, Aug 2021)

For compliance reasons, this paper is NOT accessible in the United States

Federated Hermes looks at the opportunity set of senior-secured small to medium-sized enterprise loans, with a particular focus upon sponsor-less transactions.

Higher Inflation: Turning threat into opportunity (BlackRock, Aug 2021)

For compliance reasons, this paper is only accessible in certain geographies

Owing to a combination of strong demand as many economies restart post-Covid-19 lockdowns, and widespread supply bottlenecks, inflation has been surging in many parts of the world. While there are good reasons to expect this surge could be transitory, many investors are concerned that inflation may well remain higher than pre-pandemic levels for longer than is comfortable.

JACKSON HOLE

Quick Take on Jerome Powell’s Jackson Hole Speech (Capital Group, Sep 2021)

For compliance reasons, this paper is only accessible in certain geographies

Two fixed income portfolio managers from Capital Group examine Fed Chair Jerome Powell's recent speech and its implications for U.S. monetary policy.

Powell Reassures Markets of No Rushed Rate Hike (Invesco, Aug 2021)

For compliance reasons, this paper is only accessible in certain geographies

Kristina Hooper, Global Market Strategist at Invesco, analyses several recent hawkish comments from FOMC members, as well as Chairman Jerome Powell's calming speech at the recent Jackson Hole conference.

Podcast: A tumultuous recovery (NN IP, Aug 2021)

In this podcast, NN IP reflects upon the implications of speeches at the Jackson Hole economic conference, as well as their outlook for financial markets.

CENTRAL BANKING, INFLATION, AND GLOBAL MARKETS

Forgetting About the Fed, Just for a While? (BNP Paribas AM, Sep 2021)

In the wake of the Jackson Hole economic conference, BNP Paribas Asset Management recommends focusing for the moment on other economic indicators and ECB activity.

Central Bank Watcher: Changing climate (Robeco, Aug 2021)

Robeco's Central Bank Watcher reviews monetary policy activity across the globe, with a focus on the Fed, ECB, BoJ, and PBoC.

Looking at Bonds Through a Glass Half Full (Janus Henderson, Aug 2021)

For compliance reasons, this paper is only accessible in the United States and Canada

Janus Henderson's Global Head of Fixed Income Jim Cielinski presents a constructive view of fixed income markets, anchored by moderate inflation, low default rates, supportive central banks, and low distress across credit markets.

Podcast: Is the whole world addicted to monetary stimulus? (Lazard AM, Aug 2021)

Will central bankers ever stop quantitative easing, or is the world too addicted to the support that it provides? Lazard discusses debt dynamics, macroeconomic principles, and emerging market implications in this 25-minute podcast.

Inflation (Man Group, Sep 2021)

Man Group's recent panel discussion on inflation dynamics includes commentary from a central banker, finance practitioners, and academic professors.