The Weekly Fix

BlueBay Institutional Portfolio Manager discusses what we’re looking for in some key economic data releases this week and how it might affect our positioning.   It’s a busy week on the economic calendar. Signs that the economy is doing better than expected may push rate cuts out further in the future. We’re paying special attention to the release of the Producer Consumption Expenditures (PCE)...

BlueBay Head of US Fixed Income Andrzej Skiba discusses how investors are dealing with recent trouble spots within the US commercial real estate issues and how we’re dealing with the turbulence.  In our judgement, US commercial real estate (CRE) will be a source of negative headlines in 2024. Several banks across the globe with significant US CRE exposure have reported increased provisioning....

BlueBay Head of US Fixed Income Andrzej Skiba discusses how investors are dealing with strong macro-economic data and heavy treasury issuance. The US economy continues to turn out strong results. It remains to be seen if softer data paves the way for rate cuts later in the year. The market continues to adjust its view on the timing and extent of rate cuts.

Stephen Fitzsimmons discusses how the comments coming out of FOMC meeting this week may well provide insight into the future direction of markets. Bond issuance is on a record setting pace in January. Compelling total return opportunities exist in fixed income. Although the market was early to rally as hard as it did in the end of 2023, the directionality of the rally is the correct one.  We...

Summary: BlueBay Senior Portfolio Manager Tim Leary explains why bond markets remain healthy following the retrenchment. Bond markets have given back the sharp gains achieved at the end of 2023. Technicals are quite strong and the market remains liquid and healthy. On the floating rate side of the coin, leveraged loan activity is robust.

In this week’s episode, hear Andrzej Skiba explain how expectations need to be reset after the rally to end 2023, but that opportunities abound.     Summary points: The sharp market rally has investors rethinking future return expectations. Significant rate cuts are priced in. When assessing market projections for early rate cuts, we see room for disappointment. On average, Investme...

In this week’s episode, hear Brandon Swensen recount the events that have made 2023 a very exciting year for investors.  Summary points: The year began against a backdrop of a resilient US economy but one saddled with high inflation. 2023 has included volatility from monetary policy, fiscal policy, domestic politics, geopolitics, and company specific events. Markets have rallied into the end...

Summary: This will be a busy week in the market as investors look to digest key data readings on key measures.  BlueBay Institutional Portfolio Manager Stephen Fitzsimmons outlines the significance of the news and our expectations. Key points: ·         Upcoming data releases will provide further clarity to investors. ·     &nbs...

Summary: The BlueBay US Fixed Income team is seeing strong demand in the secondary market for new corporate bond issuance.  Investors seem enticed by the high current coupons, the strong macro-economic background and the prospect of future rate cuts, explains Stephen Fitzsimmons. Key points- High current coupons and levels of carry on high quality corporate debt are enticing to investors.&nbs...

Summary: Senior Portfolio Manager Tim Leary discusses how we’ve entered a quiet period for the markets as new issuance is low and there is little for companies to refinance.  The key is to remain focused on the bigger picture. Key points: We’ve entered a quiet time on the market calendar. There’s little new issuance or refinancing going on. We’re focused on the bigger picture of disinflation,...

Stephen Fitzsimmons discusses how the market was caught flat-footed by last week’s CPI data that was below expectations and markets rallied as a result.   Inflation data was announced as having been below expectations across the board. Meanwhile, retail sales showed material signs of cooling.  Interest rates and stocks rallied hard. ·        ...

Senior portfolio Manager Tim Leary discusses why public investment grade and high yield is attractive once again. It’s time to give public large, liquid, publicly traded corporate bonds a closer look in this low default environment. Yields are up, inflation has retreated, and the Fed is nearly done raising rates. You haven’t missed your opportunity to profit from the current environment.

In this week’s episode, hear Andrzej Skiba describe how a few economic data points and softer language from Chair Powell helped move yields back closer to 4.5%. Concerns about over supply and peak rates have receded.  We would argue that risks are balanced. While the Fed may decide to raise rates again in December, we do see evidence of a slowdown.

With so much clouding the investment picture at the moment, Tim Leary, BlueBay Senior Portfolio Manager at RBC GAM, goes off the beaten path to discuss an interesting corner of the market in the episode of The Weekly Fix.

With short-term rates holding many attributes in the current environment, Stephen Fitzsimmons, BlueBay Institutional Portfolio Manager at RBC GAM, discusses how to enhance your portfolio with current coupon Agency mortgage-backed securities on today’s episode of The Weekly Fix. 

In today’s episode of The Weekly Fix, Tim Leary, BlueBay Senior Portfolio Manager, acknowledges the importance of the rise of geopolitical risk. And while that macro narrative continues to garner headlines, earnings season has kicked off. Four of the eight largest US banks have reported, and the numbers have come in better than expected. Time will tell, but financials seem to have the situation un...

In today’s episode of The Weekly Fix, Tim Leary, Senior Portfolio Manager, BlueBay US Fixed Income, discusses the impact of geopolitical risk, the likelihood of additional rate hikes, the macro backdrop for the 3Q earnings season and what it all means for the market. 

In this episode of The Weekly Fix, Andrzej Skiba, Head of BlueBay US Fixed Income, discusses the potential impact of the FOMC meeting on fixed income assets, emphasizing the attractive carry return, and suggesting that investors with a medium-term horizon should capitalize on the opportunity. Skiba also expresses skepticism about the Fed's optimistic scenario.

On today’s episode of The Weekly Fix, Stephen Fitzsimmons, BlueBay Institutional Portfolio Manager at RBC GAM, discusses the elevated economic data and new issue flows, and the market reactions to these dynamics. He notes the recent CPI data showed inflation remaining stubborn with not much of a reaction from the market to the news as it looks to this week’s FOMC meeting for direction on rates. Me...

While recently visiting with clients and prospects in Chicago, Tim Leary, BlueBay Senior Portfolio Manager, was able to get a strong sense of how investors are feeling about the current state of the market, and he shares those insights in today’s episode of The Weekly Fix. 

Tim Leary, BlueBay Senior Portfolio Manager, provides a summary of recent economic events. At the Jackson Hole Economic Symposium, Fed Chairman Powell made it clear the decision on future rate changes will be data-dependent. The focus remains on containing inflation towards the long-term goal of 2%. In the meantime, political rhetoric surrounding monetary and fiscal policies is heating up, while t...

 In today’s episode of The Weekly Fix, Andrzej Skiba, Head of BlueBay US Fixed Income at RBC GAM, discusses the upcoming economic symposium in Jackson Hole. Policymakers will be discussing a range of issues, but no major policy changes are expected to be announced. Yields continue to rise as investors react to positive economic data, but Skiba believes that growth data will moderate, and infl...

In the latest episode of The Weekly Fix, Andrzej Skiba, Head of BlueBay US Fixed Income at RBC GAM, discusses the current market trends. While inflation has moderated, economic growth remains strong, and we aren’t yet approaching the Fed’s 2% inflation target. But there is a lag to policy shifts and tighter lending standards, so we wait for more data to steer market direction. Meanwhile, we contin...

In today’s episode of The Weekly Fix, Ajeet Atwal, Portfolio Manager, BlueBay US Fixed Income at RBC GAM, discusses the impact of improved market sentiment on the collateralized loan obligation (CLO) market. Earlier this year, a pullback by CLO buyers caused spreads to widen out, but the buyers have come back as conventional wisdom moves towards a no recession scenario. Spreads have come in, but C...

In this episode of The Weekly Fix, Tim Leary, Senior Portfolio Manager of Leveraged Finance, BlueBay US Fixed Income, reflects on the Fed no longer forecasting a recession, and how the backdrop to support that sentiment is conducive for credit markets.