FICC

A short insight on the ECB and near-term implications for European asset markets.

In this insight, we provide an update on the Canadian economy, given yesterday’s rate cut, and implications for Canadian assets.

Our Portfolio Allocation Summary for June 2024.

We comment on whether Treasury market valuation is sufficiently attractive to get long bonds and consider some of the common arguments for why yields may yet make new highs.

Special Report

In this Special Report we assess the absolute and relative attractiveness of developed market government bonds using several fair value models. Longer-term investors who are focused on value should overweight US long-maturity bonds, and favor Spanish, Australian, and potentially UK government bonds within a DM ex-US allocation.

Special Report

Nonfinancial corporate balance sheets are generally in good shape, but there are signs of deterioration at the bottom-end of the credit spectrum. We present evidence showing that credit deterioration at the bottom-end of the credit spectrum has a habit of migrating upwards.

In this Insight, we revisit our "higher for longer" theme for the Reserve Bank of New Zealand, in light of the latest central bank meeting. In conclusion, we are inching towards a more dovish RBNZ ahead. Ergo, we recommend some fixed income and currency trades.

We dig into the USD-denominated Emerging Market Sovereign Index to see which credit tiers and countries offer value relative to US Credit.

Special Report

This Special Report argues that rate cuts will come sooner in Canada than the US and offers how investors can profit from this.

Our updated views on Treasury yields and Fed policy following this morning’s CPI report.