Fixed Income Caution or Precaution, The EM Universe, and Diverging Stories
Here are the top 3 insights for August 23rd.
- Columbia Threadneedle: Caution or precaution? Fixed-income outlook for the second half of 2019
- Ashmore: The EM fixed income universe version 8.0
- Lazard: Fixed Income and Equities — Diverging Stories
- Central banks have been pivoting toward easier policy — a theme that’s been dominating bond market performance in 2019.
- In particular, the Federal Reserve has signalled potential interest rate cuts, marking a meaningful shift compared with the hiking cycle of the past three years.
- This has been a driving force behind double-digit returns in many bond market sectors in the first half of the year.
Genuine Scores for the top 3 US focused Bond funds:
- AAAMCO Ultrashort Financing Fund, 100
- Goldman Sachs Access Treasury 0–1 Year ETF, 100
- iShares Ultra Short-Term Bond ETF, 100
- Going forward, on conservative projections, the EM fixed income universe should grow to at least USD 39trn by 2024 at which point it will constitute 26% of the global bond market.
- Index representation, though improving, remains poor overall.
- However, investors can still obtain great diversification if they take exposure across all the four types of fixed income markets in EM for which the main benchmark indices now cover 154 individual markets.
Genuine Scores for the top 3 Emerging Market focused Bond funds:
- BlueOrchard Microfinance, 100
- DoubleLine Low Duration Bond Fund, 99
- Barings Emerging Markets Debt Short Duration, 95
- In August, Lazard’s fixed income investment professionals refocused on the sharp divergence between bonds (where yields are near all-time lows) and equity markets (which are at or near all-time highs).
- In contrast to our conversation in previous months, our analysts focused on investor expectations reflected in the asset prices and whether they were realistic.
- Bond and Equity Investors: Different Expectations
- The Fed Rate Cut: The Right Decision for the Right Reason?
- Europe: Manufacturing Recession
Genuine Scores for the top 3 Globally focused Bond funds:
- Federated Project and Trade Finance Tender Fund, 100
- Payden US Dollar Liquidity, 100
- LO Funds — Ultra Low Duration, 100
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All the best,
Genuine Impact Team
p.s. all Genuine Scores are accurate as of the 21st of August