Fixed Income Markets and the End of Easy Money

What the new monetary policy regime may mean for FI investing

Fixed income investors are witnessing what looks like the end of a multi-decade monetary policy cycle. Central banks have raised rates and reduced balance sheets to fight off inflation. However, this has caused substantial volatility across fixed income sectors. Don't miss these key insights into what the current macro backdrop could mean for debt and credit investing.

An Examination of Underwriting Metrics and Losses Through 60 years (MetLife IM)

Using data since 1957, this paper explores commercial mortgage loan performance with a focus on risk.

Why Agency Mortgage-backed Securities and Why Active? (MFS)

Similar to Treasuries, the MBS sector is a high-quality, liquid sector with controlled credit risk as it is generally understood that the U.S. government would back these securities.

Global Bonds Navigator: Piloting A Soft Landing (Janus Henderson Investors)

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

As central banks around the world are in the process of changing the monetary policy regime, fixed income investors are preparing for potentially volatile outcomes.

Private Credit Investing: Whatever the Weather (M&G Investments)

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

Private credit has grown from an exotic alternative into a mainstream diversifier designed to support portfolios throughout various market regimes.

Front-end Fixed Income: The Window of Opportunity (BlackRock)

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

With the curve mildly inverted, there is relatively little term premium in longer-term rates. As such, investors might look at the front-end for opportunities.

Perspectives On Securitised Credit (T. Rowe Price)

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

More recently, T. Rowe Price's securitised team tempered its conviction in the asset class from favourable to neutral despite cheaper valuations and solid fundamentals.

Central Bank Watch: To Neutral and Beyond (Franklin Templeton)

For compliance reasons, this paper is only accessible in the EMEA region

This paper offers a snapshot into the key monetary policy moves made recently by the G10 central banks, as well as insights into what their next moves may be.

EM Fixed Income: We Aren’t Out of The Woods Yet (UBS Asset Management)

Emerging markets fixed income showed negative total returns across most asset classes during the third quarter of 2022. Will the underperformance continue?

The Fed Has to Keep Tightening Until Things Get Worse (Bridgewater Associates)

The U.S. central bank seemingly has no choice but to continue tightening its monetary policy until it sees pain in the economy and financial markets.

Hedge Funds and Treasury Market Price Impact (OFR)

The growth of non-bank financial intermediaries has raised questions about the stability of the U.S. Treasuries market, especially in a changing monetary policy regime.