Fixed Income Investing

Living with inflation

Inflation rates are rising globally and exceeding pre-pandemic levels in most countries. This acceleration appears to be fundamentally different from other inflationary periods usually linked to regular business cycles.

Beyond the pandemic, who would dare say that red-hot inflation has no structural cause against a backdrop of raw material shortage and supply shocks arising from climate change? Though central banks are starting to normalize their policy, they are still more dovish than hawkish, as evidenced by the negative real interest rates. The last time they were as negative as today was in the 1970s! Which asset classes should we favour in this environment?

Hunt for yield

In the context of a strong economic restart and rising inflation environment, the hunt for yield is becoming more and more challenging for investors. This risk-on environment support investors’ appetite for riskier exposure such as high yield and emerging market debt to meet income objectives. In this quest for performance, the fundamental principles of portfolio diversification, resilience, flexibility can’t be ignored. Trackinsight helps you make the right investment decisions.

The sustainable transition

The momentum around transitioning to a sustainable portfolio is accelerating at a rapid pace. Total green bond issuance now exceeds one trillion USD, and the adoption of sustainable Fixed Income ETFs is rising steadily. With such substantial growth in the products, resources, and insights available to investors, there is an increasingly pressing need to understand the nature of the available tools. More importantly, the investment approach to achieve the same risk and return profile when integrating sustainability.