News & Insights
March Macro Update
In light of recent market moves, we have updated the macro section of our Q1 2020 Outlook. All updates in the document are in grey text. To read the full article, please click here. For further information or to speak to a member of the staff please give us a...
Equity Markets Thoughts And Observations
Over the last five weeks, equity markets have experienced an unprecedented and unique environment. There has never been, in recent times, a situation like COVID-19 which has resulted in, not only a slowdown in the global economy, but a lockdown. Equity markets have...
London & Capital Bank Stress Test
FIXED INCOME STRATEGY – GLOBAL BANK STRESS TEST ASSESSMENT Exposure to the banking sector is a key strand of the London& Capital Fixed Income strategy. As the Covid-19 crisis has escalated, the sector has come under pressure, along with other credit sectors....
The demise of Fixed Income after a 30-year bull market?
Not quite yet. Fixed Income has legs left in it, bruised and battered by one week of madness (normally summer madness). As you would expect after such a bruising episode, we have looked deep inside ourselves to ensure that we have shed all behavioural bias and are...
Global Banks Revisited
IS THERE STILL CONVICTION WITH FINANCIAL BONDS? Yes, we have conviction in financial bonds not based purely on faith but the crucial role they play in the effective functioning of the economy. We have seen that in the very early stages of the response to this human...
Overview IG Document
CORPORATE HYBRIDS Corporate Hybrids were a strategic component of our medium-term Fixed Income allocation made up of Defensive Utilities Major Global Corporates In the recent market maelstrom, even defensive names such as major utilities have got hit by a mark-down in...
Fixed Income Market Update
The Fed acts in line with its broader mandate and introduces three significant, game changing policies in time for them to have an impact:Unlimited purchases of US government debt and Mortgage Backed Securities. Buying of corporate bonds issued by US companies in the...
Macro Outlook Q1 2020 | 20/20 End of cycle postponed, but vision far from perfect
2019 will be remembered as the year when major central banks staged a significant turnaround in monetary stance. The easing was precipitated by the US Federal Reserve’s (Fed) dovish pivot in January, and since then we have seen both the Fed and European Central Bank...
Note from the CIO November 2019 | FOMO + QE = Fuel for the markets, but for how long?
The herd is thundering back into risk-taking. The sudden improvement in investors’ sentiment has come as the Fed has reversed its policy of five years, and started to expand its balance sheet again. It did this to restore liquidity to the repo market, where banks...
Macro Outlook Q4 2019 | The Japanification of the Global Economy
On the back of the screeching handbrake turn by major Central Banks, financial markets are showing signs of extreme confusion: while equity markets still seems to be in “insurance policy” mode, bond markets have moved to price in a higher likelihood of recession. It...
Macro Outlook Q3 2019 | Monetary Policy in Full Swing
On the back of the screeching handbrake turn by main Central Banks (led by the Fed), financial markets are exhibiting signs of extreme confusion: equity investors’ thinking about the Fed still seems to be in “insurance policy” mode, while bond markets are pricing in a...
Note from the CIO June 2019 | Heading for recession or long slowdown?
Recent market events are shaping our outlook: The value of global sovereign bonds with negative yields has doubled since last October to $11 trillion in May (only $1 trillion below the all-time high registered in mid-2016). And all this while the US economy is...