Navigating the Complexity of Global Fixed Income Markets

Insights Into What Moves Fixed Income Markets Today and Tomorrow

The year so far has brought plenty of volatility for both equity and fixed income investors. Capital allocation in times of high uncertainty needs a fresh perspective. This is particularly the case when looking at fixed income, one of the most important asset classes which has traditionally been used by investors to mitigate portfolio risk. Explore the selection below of high-quality research on the short-term and long-term dynamics underpinning credit markets.

Podcast: Credit: Where Do We Go from Here? (Columbia Threadneedle Investments)

What impact do different macroeconomic forces, such as inflation and monetary policy changes, have on fixed income markets? This podcast answers the question in detail.

Estimating Neutral Rates (Vanguard)

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

Neutral rates have significant implications for long-term capital allocators, especially for fixed income investors who need to take a multi-year outlook on economies and markets.

The Four Myths of Private Credit (New York Life Investments)

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

Fundamentals of direct loans are being questioned. Credit risk is tied to business risk and the latter is increasing as geopolitical tensions and economic headwinds abound.

Debt Sustainability and Monetary Policy: The ECB's Asset Purchases (BIS, 2022)

Using a model of stochastic debt sustainability analysis, this paper examines the effect of unconventional monetary policies on sovereign debt, focusing on the ECB's policies.

Decomposing the Drivers of Global R* (Bank of England, 2022)

Determining the natural or neutral rate of interest for a country is difficult enough. This paper has a much bolder goal, aiming to provide a basis for finding the Global R*.

The Bond Market Selloff in Historical Perspective (FRBNY, 2022)

The recent bond market sell-off was one of the worst in history, according to in-depth analysis by the New York Federal Reserve.

Decarbonising Fixed Income Investment (FTSE Russell)

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

FTSE now provides an index that represents the performance of the bonds in FTSE fixed income indices after excluding credit from issuers exposed to fossil fuels.

Decomposing Long Bond Returns: A decentralised theory (Review of Finance, 2022)

How does the market reach a certain price for a particular bond? What factors contribute to that figure? This paper looks at decentralised theory in answering these questions.