Monthly Archives:

March 2018

BVTV: A look at the US and UK bond markets

This week on BVTV, I have a look at past US interest rate cycles. With new Fed Chair Jerome Powell now in the hot seat, bond investors are keen to understand whether he will be more hawkish than his predecessor, Janet Yellen. Turning to the UK, the market is now pricing in a high probability that the Monetary Policy Committee hikes interest rates in May, but the flattening of the gilt curve may…

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BVTV: What’s in store for retail?

Toys “R” Us announced last week that it has so far failed to find a buyer or reach a debt restructuring deal, raising the prospect of widespread store closures and job losses. While a rescue package could yet emerge, the future is looking far from rosy for the toy store. M&G fund manager and deputy head of retail fixed interest Stefan Isaacs joined me this morning to discuss prospects for the f…

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Are sovereign bond-backed securities the key to financial stability within the Eurozone?

Creating a Eurozone-wide safe asset and thus diversifying sovereign risk within the currency union without the need for sovereign debt mutualisation – sounds like having your cake and eating it, doesn’t it? Well, according to the European Systemic Risk Board (ESRB), sovereign bond-backed securities (SBBS) might do the trick. SBBS are merely an idea, discussed in ESRB working papers, feasibility…

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BVTV: Tariffs, trade wars and economic shockwaves

President Trump has sent shockwaves through the global business community with his decision to impose tariffs on steel and aluminium imports to the US. Will this protectionist move prove to be the catalyst for an eventual downturn in global economic growth, and what are the implications for equity and bond markets? Randeep Somel, deputy fund manager in M&G’s equities team, joined me this mornin…

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