Talking Heads

 Given concerns about a secular rise in inflation and higher policy rates, in addition to question marks about the capacity of traditional asset classes to generate attractive investment returns, the search is on for alternatives. Listen to this Talking heads podcast with David Bouchoucha, head of private assets, and chief market strategist Daniel Morris as they discuss the strategic case for inve...

Listen to our quarterly asset allocation podcast with global head of multi-asset Maya Bhandari and chief market strategist Daniel Morris . They review the four key determinants of financial market behavior this year and the investment opportunities that follow from that assessment for the main asset classes.  Hosted on Ausha. See ausha.co/privacy-policy for more information.

Given China‘s pivotal role as the world’s second-largest economy, its recent refocusing on lifting growth should be a tailwind for other economies. On this Talking heads podcast, Zhikai Chen, head of emerging market equities, tells chief market strategist Daniel Morris that nearer neighbours such as Thailand should benefit from more tourism. The new focus on fueling growth should be good news for...

Picking investable assets for a portfolio can be hard. Fundamental analysis focuses on what investors believe will happen in the future. On this Talking heads podcast, senior quantitative analyst Frederic Abergel discusses the basics with chief market strategist Daniel Morris. They then go into how risks are managed in a portfolio and discuss three ways of measuring the performance of a multifacto...

After a bright start, US mortgage-backed securities face a sunnier year in which this fixed income asset class could reverse part of the gloomy outcome of a challenging and volatile 2022. In this Talking heads podcast, John Carey, head of structured securities, tells chief market strategist  Daniel Morris that the mortgage-backed securities (MBS) segment now presents a reasonable choice for fixed...

In what can be expected to still be volatile currency markets, the US dollar looks set to lose further ground in 2023 as its lustre as a high-yielding hedge fades. Listen to this Talking heads podcast with John Bradley, head of foreign exchange, and chief market strategist Daniel Morris as they discuss the dollar’s sizeable correction in recent months and the likelihood that currency markets will...

We anticipate a better year for emerging market corporate debt on the back of a brighter outlook for China and the wider Asian region. Listen to this Talking heads podcast with Alaa Bushehri, head of emerging market credit, as she tells chief market strategist Daniel Morris that her highest convictions include China real estate, Indian renewables, Macau and selected South Korea sectors. For more i...

Since biodiversity loss affects large swaths of the economy, it should be front of mind for investors. Not least because, as Adam Kanzer , head of stewardship for the Americas, points out, nature loss also makes meeting the world’s climate goals harder.  Hosted on Ausha. See ausha.co/privacy-policy for more information.

Sergey Pergamentsev, head of Institutional Structured Management in the Multi Asset Quantitative and Solutions team, and co-head of the Investment Insights Centre Andrew Craig discuss recent developments in liability-driven investing (LDI), a strategy institutional investors such as pension funds use to match investments and future liabilities.  Hosted on Ausha. See ausha.co/privacy-policy for mor...

The sell-off in bond markets this year has driven yields to levels that merit closer attention, says Victoria Whitehead , senior portfolio manager for European investment-grade (IG) credit. Victoria sees eurozone IG credit as attractive on the basis that risk premia are commensurate with much higher default rates than she thinks will actually materialise.  Hosted on Ausha. See ausha.co/privacy-pol...

Slower growth (and eventually, lower rates of inflation) will likely come in 2023 thanks to restrictive central bank monetary policy. What conclusions should investors draw for their allocations to equities and fixed income around the world?  Hosted on Ausha. See ausha.co/privacy-policy for more information.

Thematic environmental strategies face countervailing forces in the near term. Support may come from the ‘green shoots’ of the recent growth stock recovery, offset by the downdraft of recessionary risk. Investors with a longer-term view should stay focused on the tailwinds and enduring drivers of demand including regulatory and legislative support.  Hosted on Ausha. See ausha.co/privacy-policy for...

While many bond investors have felt the earth move under the feet this year as the asset class experienced the finale of a 50-year bull market, the denouement has not stripped them of opportunities, Arnaud-Guilhem Lamy , head of euro aggregate bond management strategies, tells chief market strategist Daniel Morris.  Hosted on Ausha. See ausha.co/privacy-policy for more information.

As part of its contribution to the low carbon energy transition, BNP Paribas Asset Management is taking action and implementing best practice, including in its investment strategies. This includes working with clients on decarbonisation and setting internal targets to progressively increase the share of assets under management aligned with net zero greenhouse gas emissions.  Hosted on Ausha. See a...

The tide is rising for water as an investment theme as it benefits from a growing awareness of both climate change and years of underinvestment, particularly in water infrastructure. This focus should have a direct positive impact on companies providing water solutions, Justin Winter, water strategy co-manager, tells Andrew Craig, co-head of the investment insights centre.  Hosted on Ausha. See au...

Tumultuous geopolitical and economic times may be clouding the prospects for the high-growth renewables sector now, but investors should not lose sight of the longer-term potential of areas such as solar and green hydrogen, Edward Lees, co-head of the Environmental Strategies Group, tells chief market strategist Daniel Morris on our weekly Talking heads podcast.  Hosted on Ausha. See ausha.co/priv...

Thematic investing, which centres on the long-term forces that shape consumer needs and industries, is a way for investors pivot away from traditional 60-40 portfolios to a broad and diversified set of opportunities that can create market-beating returns spanning several generations.  Hosted on Ausha. See ausha.co/privacy-policy for more information.

Investors shell-shocked by the fallout from high inflation, rising interest rates and slowing economies and looking to alternative markets for portfolio diversification and attractive returns might want to consider a relatively young and little known asset class: direct small lending. Hosted on Ausha. See ausha.co/privacy-policy for more information.

While equity markets are feeling the pinch from rising real rates, earnings reports and guidance are yet to reflect the effects of the encroaching recession. This leaves markets vulnerable to a downside correction once the message sinks in.  Hosted on Ausha. See ausha.co/privacy-policy for more information.

It is all hands on deck to deal with the current energy crisis, even if that forces countries to use more polluting fossil fuels to meet energy needs especially in the coming winter. However, that does not mean the transition to renewable resources should end up on the backburner. Instead, there is a clear case for accelerating the move to solar, wind and other sources of clean energy.  Hosted on...

Senior secured corporate loans are debt instruments similar to high-yield bonds in that they are rated below investment-grade (Ba1/BB+). They differ from high-yield in that they are senior secured instruments, secured by all assets on a company’s balance sheet. In addition, as floating rate instruments, global loans are relatively immune to the adverse impact of rising interest rates.    Hosted on...

The summer has seen a sharp deterioration in prospects for the the euro area economy. The cost of living crisis is hitting consumers’ pockets hard. Europe’s manufacturing sector is contracting while momentum in the services sector is slowing. To make matters worse, wholesale energy prices have soared to all-time highs in Europe as Russia throttles gas supplies.  Hosted on Ausha. See ausha.co/priva...

As a broad asset class underlying the full spectrum of economic activity and a non-cyclical slant, infrastructure debt has attributes that stand out for investors. One key point is that many of the services financed with these bonds are indexed, protecting cash flows from rising inflation. Also, the debt typically has floating rate coupons that are adjusted when interest rates rise.  Hosted on Aus...

Base effects, lower (or less high) energy and raw materials prices and a broad economic slowdown later in the year may see eurozone inflation stabilise or retreat towards the end of 2023. However, for now, an inflation-busting ECB will likely keep its foot on the monetary policy brake and could soon even raise policy rates by a chunky 75bp rather than the more widely expected 50bp.  Hosted on Aush...

Senior investment specialist for global equities Ramon Esteruelas briefs chief market strategist Daniel Morris on four books he has read on climate change. The books discuss the relevance of climate change science and the reliability of projections, the availability of adaptive and mitigating solutions and breakthroughs, the long road to net zero, and the need for a rethink on growth.   Hosted on...