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Debt ceiling tremors in the Treasury market

The United States is fast approaching the point at which its indebtedness reaches its debt limit, which generally is approved by Congress without debate. Routinely in the past the debt ceiling would be raised, reflecting that it does not affect the amount of spending, but only makes sure the U.S. can pay for spending it is committed to whether by tax receipts or by borrowing. It is about ensuri…

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This week on BVTV

It was just about 3 years ago the market was getting very relaxed about the global economy, asset prices were rich and volatility was very low…then the market sold off. Today it feels like we are back to that situation: a recession seems very unlikely, but can we experience another market correction? In this episode of BVTV we highlight 3 things that could potentially lead to a correction in th…

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One year, one hundred climbs. 76 down, 24 to go. The end is in sight…

I’m now more than three quarters of the way through my attempt to climb 100 iconic hills, bergs, kops and mountains on my bike in 2017.  It’s been amazing fun so far, and I’ve ridden a huge variety of different types of hill and mountain with some great people.  The hardest?  Well it took me six tries to get up Bristol’s Vale Street, the steepest residential road in the UK – but I was on a stat…

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BVTV: Oil weakness – threat or opportunity?

As we enter the second half of 2017, one of the biggest themes to emerge recently has been renewed oil price weakness. M&G credit analyst Vladimir Jovkovic joins me this morning on BVTV to discuss what’s driving the latest price falls and what the possible implications may be for the next US high yield investment cycle. Also this morning: a quick recap of how bond markets have performed in the …

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This week on BVTV

Join us on BVTV, where this week we discuss:

  1. Lower oil prices – less of a concern for risk appetite this time around;
  2. BoE: Keep calm and carry on expecting;
  3. Traditional drivers for EUR/USD have broken down –  more Euro strength to come?

Tune in for our thoughts on the stories making headlines this week.

 

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BVTV: Oil dips, Argentina and the EU-summit

Oil has entered a bear market, despite OPEC’s ongoing supply reduction of 1.8m barrels/day, which started in January 2017 and is set to continue until March 2018. How are fixed income markets reacting? Also, Argentina has been in the news twice this week: successfully tapping the market for the $2.75bn sale of a 2117 bond, but failing to make MSCI’s upgrade from frontier to emerging markets. Ho…

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Argentina’s century bond: much ado about nothing

Argentina’s recently issued century bond deal was unexpected in terms of timing and maturity. Century bonds in Emerging Markets (EM) are rare (we think the table below is pretty exhaustive) and they grab the headlines, especially when issued by a credit that has defaulted many (many) times, like Argentina.

Are century bonds that much risker?

  1. Duration: As we wrote previously, the duration of …

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The euro and the dollar: rates not driving performance. So what is?

Despite US rate hikes in December, March and another last week, the US dollar has depreciated back to pre-election levels.  All of the Trumpflation dollar premium has disappeared.  As the Trump dollar trade appears to have run out of steam, the Euro has however been climbing. Optimism around the Euro area growth comeback grew leading up to the ECB meeting earlier this month, with EUR/USD hittin…

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BVTV: Will the Fed spoil the EM party?

A hiking Fed has caused trouble for Emerging Markets in the past; will history repeat itself? Also, we touch on two things from the Fed meeting that are more interesting than the actual hike itself.

Tune in for the latest edition of BVTV, where Fund Manager Claudia Calich joined me to discuss how she has positioned her EM debt portfolios for the second half of the year.

 

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