High-yield bonds – on a rollercoaster ride
Not only fund flows are capricious when it comes to high-yield bonds. Investor sentiment towards the asset class also swings continuously, particularly on a country-by country- basis.
Investment
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Markets flat as Japan leaves helicopters grounded
Markets were largely flat on Friday as investors digested the news that Japan has decided not to launch the ‘helicopter money’ that some see as the answer to its economic struggles.
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Emerging market debt defies outflows trend
In June, emerging market bonds was the only asset class to see an improvement in fund flows from the previous month.
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Fed turns ‘mildly hawkish’
The Federal Reserve’s decision to hold rates at 0.25-0.5% announced last night surprised nobody, but the accompanying rhetoric suggested a more hawkish stance is emerging.
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Brexit vote triggers flight from European equities
Outflows from European equities swelled to levels not even seen during the financial crisis after last month’s Brexit vote.
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Active management sector needs to shrink – Moody’s
The active management industry will have to shrink substantially, Moody’s Investor Services argues in a new report on the growth of passive investments.
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It would be rational for the UK to leave EU ASAP – Mirabaud
From an investment point of view it would be rational for the UK to avoid delays in leaving the EU, said Gero Jung, chief economist at Mirabaud.
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European investors backed the wrong horse
The past 12 months haven’t been a great time for equity investors. Only US equities delivered a positive return during the period, albeit a modest one. A year ago, few European investors were betting on this asset class to do well though.
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European equity sentiment in freefall
Appetite for European equity has cooled down significantly. Already before the British vote for Brexit, the asset class had fewer fans than at any point in the past five years.
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ESMA advises extension of fund passporting to non-EU countries
Esma, the European financial regulator, has concluded there are no ‘significant obstacles’ to extend passporting rights for alternative investment funds (AIFs) to seven non-EU jurisdictions: Canada, Guernsey, Jersey, Japan, Switzerland, Hong Kong and Singapore.
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Emerging market equities set to gain from Brexit
Emerging market equities are now the most popular asset class with European investors. And demand for the asset class is set to accelerate for several reasons. Not the least of those is Brexit.
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HY bonds generate largest daily inflows ever
Bank of America Merrill Lynch data revealed 11 July was “the day when bears capitulated into risk assets” with investors flocking to high yield in droves.