Fixed Income: Market Trends and Tools

Questions on Inflation, Monetary Policy and Yield Curve Answered

Neither equity nor fixed income markets have escaped the wave of rising volatility this year. In the fixed income space, rising interest rates and inverted yield curves have put investors on recession alert. Below, readers can find in-depth analysis on these topics and much more, including bank reserve levels and convertible bonds.

There Is an Alternative: Hedged Convertible Bonds (Lazard AM)

Rising inflation and interest rates have created much uncertainty. Hedged convertible bonds offer investors a novel way to protect their capital against volatility.

Adding Floating-rate CLOs to Fixed Income Portfolios (Janus Henderson Investors)

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

Floating-rate collateralized loan obligations can be a beneficial addition to investors' fixed income portfolios – both in terms of diversification and return generation.

Multi-Strategy Credit Q2 Commentary (BlackRock)

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

Market volatility has hit both equity and bond markets so far this year. A key driver has been the changing monetary policy regime.

Fixed Income Outlook: Twin Peaks (Robeco)

Reading the yield curve, investors should expect recession to be just around the corner. Their allocations may need to shift accordingly.

Getting Inside the Fed's Head (Vanguard)

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

Trying to predict what the Federal Reserve may do next is impossible – especially as different economic outcomes will lead to different monetary policy scenarios.

Podcast: Fixed Income 5 Points – September 2022 (RLAM)

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

Some of the main questions on investors' minds right now include: What path will inflation take? Have we seen its peak or is there more to come?

How Much Can You Lose with Bonds? (Finomial)

Bonds are regarded as safe assets, certainly when compared to equities. However, this does not guarantee that money cannot be lost by investing in them.

The Reserve Gap (Fed Guy)

Quantitative Tightening (QT) assumes that banks have ample reserves. If bank reserves decline, a more hawkish monetary policy stance may be difficult to implement.