The comfort of strangers: investors should look to the less familiar

Adaptation is necessary when an environment becomes less favourable. So, as the global outlook assumes a gloomier cast, we believe investors should look beyond the comfort of conventional asset classes and bolster their portfolios with less familiar – and less correlated – assets. Secular stagnation? Recent headlines provide no shortage of alarming developments: a lurch … Continue reading “The comfort of strangers: investors should look to the less familiar”

Asia set to become sustainable investment hub

The region presents investors with a growing range of opportunities to generate positive returns and have a positive impact on the planet at the same time. Asia looks set to become a hotbed for sustainable investment, driven by structural economic factors, growing institutional allocations and tightening regulations. Investors in Asia have lagged developed market peers … Continue reading “Asia set to become sustainable investment hub”

Quantitative easing returns to the European Central Bank

History seems set to repeat itself in Europe. Less than a year after the European Central Bank (ECB) wound up its bond-buying programme, the words ‘quantitative easing’ (QE) are back. ECB President Mario Draghi sent the latest signal about the Bank’s intentions at last month’s Sintra conference for central bankers in Portugal. He made it … Continue reading “Quantitative easing returns to the European Central Bank”

What can we learn from the shape of the yield curve?

Surveys of investors show a distinct degree of nervousness this summer. One reason may be President Trump’s propensity for off-the-cuff Twitter activity, taking aim at Turkey, NATO, and Iran, the global trading system or any of his other enemies. Another explanation is rather more technical – prosaic, even. But it also illustrates how caution about … Continue reading “What can we learn from the shape of the yield curve?”

How will central bank tightening affect emerging market bonds?

Investors are worried; they’re hearing noises from the US Federal Reserve and the European Central Bank about reducing balance sheets and hiking rates. They are wondering whether that will have an impact on emerging markets and on Asian bonds. In the past, they’ve been right to worry. Generally, when central banks start tightening, it does … Continue reading “How will central bank tightening affect emerging market bonds?”

Green is the new black

There is a new breed of bond in the fixed income world. It’s different, it’s bold – it’s the so-called ‘green bond’ market. As the drive towards environmental, social and governance (ESG) investing continues to gather pace, policy makers and investors alike are waking up to the importance – and benefits – of green bond … Continue reading “Green is the new black”

UK election: what a hung parliament means for markets

Following the surprise UK general election result, Schroders’ Alix Stewart,  David Docherty & Azad Zangana, consider the implications for the economy and markets.   The UK general election has resulted in a hung parliament, with no party commanding an overall majority. The Conservatives have emerged as the largest party and will likely seek to form … Continue reading “UK election: what a hung parliament means for markets”

Trump in the White House – all expectations out the window

The election of Donald Trump as the next US president has been a game-changer thus far for fixed income markets, upending all expectations of what will happen next. One thing is for sure, though: Trump’s policies will have a major, far-reaching impact on bond markets. Trump has promised two broad changes – greater fiscal stimulus … Continue reading “Trump in the White House – all expectations out the window”