Bank of England warns about Brexit stagflation risks
A vote to leave the European Union would most likely result in a material slowing of growth and a notable rise in inflation, the Bank of England said on Thursday.
Inflation
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Has the tide finally turned for inflation-linked bonds?
With the eurozone currently experiencing deflation, inflation-linked bonds are probably not the first thing on the mind of investors. However, as Brent crude is now back at $48, the only way for inflation is probably up. So should investors start thinking about protecting their portfolios against price rises?
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It’s easy to see the attractiveness of corporate bonds, says David Roberts
David Roberts, head of fixed income at Kames Capital, argues that the choice between government bonds and corporate bonds is an easy one. He also argues eurozone investors are underestimating the dangers of inflation in 2016.
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Inflation-linked bond flows: up and down with the oil price
As the eurozone has been flirting with deflation this year, appetite for inflation-linked bonds has been understandably lacklustre. However, as the oil price started a surprise ascent in April, interest in the asset class rose accordingly. With the oil price now below $50 again, investors are once again abandoning the asset class.
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Chinese QE – more curse than blessing
As the all-powerful government in China continues to see the stellar growth it had become used to in recent years ebbing away towards 6% and perhaps even below, it will inevitably reach for new levers to pull. Just as they once did with Western manufacturing, the Chinese are likely to be looking at the United…
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Investors get foretaste of bond market plunge
While government bond yields and, in particular, gilt, bund and treasury yields have all been rising in recent weeks (German 10 year yields doubled last week) the last few days have seen sudden, sharp moves that have seen investors lose significant amounts of capital. As one investor put it to Portfolio Adviser on Thursday, if…
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Deflation threat played down at Luxembourg
On the day Mario Draghi announced a historical interest rate cut for the Eurozone, the panellists at Expert Investor Luxembourg trivialised deflationary risks for the currency union.