Empirical research has shown that China (and the renminbi) is moving towards the so-called ‘impossible trinity’.
Emerging market equities are likely to be resilient to tighter US monetary policy.
Interest rates saw sharp swings in 2013. 10-year Bund yields fell as far as 1.15% in May 2013, close to their historic low
It took a fortnight to count the 135 million votes cast but on 22nd July the election of Joko Widoda (universally known as Jokowi) as Indonesia’s new president was confirmed with a higher winning margin than exits polls on election night had predicted.
William De Vijlder and chief economist Joost van Leenders tell the team about their outlook on the global economy and markets.
An overview of what was presented and discussed at the Nomura Global Conference in London on 8 May 2014.
While much of Europe is still trudging along recovery lane, many entrepreneurially-managed smaller firms are showing they can grow and adapt faster.
The notion of saving to ensure a decent standard of living in old age is, for many young people, as alien as the idea of not being organically attached to a Smartphone.
A small bump in the road has a negligible impact when taken at slow speed. The story is different when one is speeding down the highway. The same applies in financial markets.
High-yield bonds have had a very strong bull run since 2009. Can this continue? The credit specialists from BNP Paribas Asset Management’ Multi Asset team present the investment cases for and against high-yield bonds.
When applying the best academic thinking to the forecasting of equity returns we find equity markets still have further to go in the next 12 months – despite the recent bull market
While the prospect of interest-rate rises and higher inflation could have many investors heading for the exits, these phenomena could brighten the outlook for convertible bonds as the asset class benefits from its position halfway between equity and straight bonds on the asset class continuum, adding another leg to its recent strong run.
In last year’s turmoil over the US tapering plans, India was labelled as one of the ‘fragile five’ emerging markets. Now, with the equity market rallying and the country having just completed a general election, Anand Shah, CIO of BNP Paribas Asset Management India in Mumbai, provides a timely inside view on what to expect from the new government, and the implications for investors.
Inflation rates have fallen significantly in the eurozone this year and led the ECB to announce, on 5 June, a packet of measures to head off deflationary threats. The jury is now out on how effective these measures will be.
Given the current expectations of rising interest rates, it could be opportune now to choose an absolute-return strategy to diversify a traditional fixed-income portfolio.
The ECB’s messages are clear: inflation will stay low and below its policy objective for quite some time; policy rates will stay low for years to come; if need be the ECB can do more but let’s see first how this works.
A renminbi short-duration bond strategy can offer investors a powerful blend of yields higher than those on comparable fixed-income issues, potential currency gains and diversification benefits, argues Adeline Ng, head of Asian fixed income.
A new paper by the Financial Engineering team shows how simple strategies based on astute risk management can generate additional returns for investors.