Mid-Week Bond Update

Goldilocks is back

Global sovereign and corporate bonds rallied over the past five trading days, as the recent central bank hawkish tone reversed and stubbornly soft US data threw cold water over reflation hopes. The goldilocks scenario in which growth is weak enough to warrant low rates but strong enough to...

Western Asset Global Outlook

Could the Fed be more cautious about future hikes?

The current steady but unspectacular global growth backdrop has not materially changed. We remain optimistic that global growth of around 3% is sustainable while recognizing that high debt loads and other headwinds, including low productivity and...

Mid-Week Bond Update

Canada feeds hawk plot

Most global bond markets suffered a third consecutive week of sell-offs, although losses eased on Wednesday after US Federal Reserve (Fed) chair Janet Yellen questioned persistent low inflation, something that until now the Fed had dismissed as temporary. Despite’s Wednesday’s sovereign rally...

Small-cap stocks

Healthy Rotation or Rally at Risk?

Royce Co-CIO Francis Gannon looks at recent small-cap results and sees a consolidating asset class setting the stage for its next move up

Mid-Week Bond Update

From DC to Sintra via Paris: a 1st half story

Global bond markets ended the first half of the year as they started it: prospects of fast growth, especially in the US, pushed sovereign yields higher, supporting spread sectors and the most equity-like fixed income assets such as...

Mid-Week Bond Update

Hawk plot - but no more Bollywood tantrums

On the cusp of the tenth anniversary of the financial crisis, and after billions of US dollars, euros and pounds spent to revive global growth, major central bank leaders sent hawkish messages almost in coordinated fashion, a move that could well signal the end of a decade-long stimulus era. From London, US Federal Reserve (Fed) chair Janet Yellen said...

Small-Cap Breakout?

Will the recent run-up in the Russell 2000 hold? Co-CIO Francis Gannon examines the forces behind the latest rise.

Mid-Week Bond Update

The Fed vs the markets

Global sovereign bonds rallied over the past five trading days as oil plunged, inflation expectations sank and data remained soft – all of which led some investors to question the US Federal Reserve’s (Fed) rate hiking path. A string of disappointing inflation, exports and investment data has...

Around the Curve

A Tourist’s Guide to Currency Management

It’s that time of year when friends and colleagues are asking about summer vacation plans. Interestingly, this question happens to dovetail with the requests we get on where we potentially see value. For those tourists who are stuck on ideas, a first logical step may be to identify favorable exchange rates to help narrow down potential destinations.

Mid-Week Bond Update

Is the Fed really tightening?

Global bond markets soared on Wednesday, reversing a mixed five-day period, after US inflation disappointed for a third consecutive month and the Federal Reserve (Fed) reinforced its dovish stance, despite rising, as expected, rates. The US central bank lifted its target rate to 1.25%, from 1%. However, financial conditions continued to ease...

Tailwinds for MLPs?

Regulatory delays for pipeline development are easing and drilling activity is increasing, which could have positive implications for MLPs in the energy sector.

Mid-Week Bond Update

Emerging Markets: sugar highs

Global bond markets rallied for a second week as investors sought traditional refuges following a poor US jobs report, diplomatic spats in the Middle East, further White House tensions and uncertainty around this week’s UK general election and European Central Bank meeting. The US dollar sank...