The FSA Spy market buzz – 15 November 2024
Granny gets a shot; Capital Group on Trump trades; Neuberger Berman’s opinion; The enduring wisdom of abrdn’s Hugh Young; Things that make one go Hmmm; M&G’s bike, and much more.
Pictured above: Ashis Dash, Morningstar
Investors have been concerned with valuations in bond and credit markets.
As central banks start to raise interest rates, either cash will start to look more attractive or bonds need to re-price in order for them to be attractive, Jonathan Xiong, Goldman Sachs Asset Management’s New York-based head of fixed income alternatives, told FSA in a previous interview. He added that fixed income investors may be in for a volatile environment.
“If you take a look at the central bank language in the G10 markets last year, everybody was still very worried about how they are going to stimulate the economy. Today, everybody’s talking about rate hikes. It is a very different dynamic from last year.”
Investors are concerned about interest rate hikes, both real and potential. Therefore, demand for global flexible bond funds (unconstrained), that have the flexibility to invest across a range for bond types and with significant risk concentrations, have gone up this year, according to Ashis Dash, Morningstar’s London-based associate director for fixed income.
Against this backdrop, Dash compares two global flexible bond funds, the Blackrock GF Fixed Income Opportunities Fund and the Jupiter Dynamic Bond Fund.
Granny gets a shot; Capital Group on Trump trades; Neuberger Berman’s opinion; The enduring wisdom of abrdn’s Hugh Young; Things that make one go Hmmm; M&G’s bike, and much more.
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