1. Newsroom
  2. Asset TV: Cautious optimism in fixed income
Menu
UBP in der Presse 26.05.2020

Asset TV: Cautious optimism in fixed income

Asset TV:  Cautious optimism in fixed income

Mohammed Kazmi, Portfolio Manager & Macro-Strategist Global and Absolute Return Fixed Income at UBP, recently participated in an Asset TV Masterclass discussing which areas of the bond market offer opportunities to investors.


 

Markets and support over the last few weeks 

  • Fixed income has been cautiously optimistic over the past few weeks.
  • Global lockdown measures have meant that infection rates are coming down, giving hope that economies will re-open soon and that growth will rebound, allowing credit markets to normalise following the significant sell-off earlier in the year.
  • There has been unprecedented support from central banks. The Fed has been purchasing corporate bonds for the first time, which has dealt with the liquidity issues from Q1 and there seems to be no limit to what central banks will do to help, which should give investors comfort.

Recovery in China, signs for global data 

  • The next few weeks will show whether global markets generally have seen the worst. 
  • Recovery has not been as fast in China as one would have hoped, according to the latest data.
  • Initially there were hopes of a V shaped recovery, but it is looking more U shaped at best.
  • A fear factor could be at play where many are choosing to stay at home and get take-aways, for example, despite many restaurants and facilities being open.
  • Therefore, we can’t assume a big bounce in the economic data in the West when things start reopening.

Data: Fixed Income, Equities and CDS Indices

  • The data for April and May should be better than previous months, which should be enough for fixed income investors, who need the situation within credit to stabilise to pick up yield and get carry.
  • Macro-economic recovery and earnings need to improve before the equity market can get more comfortable. However, liquidity has improved thanks to central bank action and there is more two-way flow in the credit market.
  • It’s important to be invested in the more liquid part of credit to trade in and out of positions easily. One way to achieve this is through CDS indices to help gain efficient exposure to credit markets and easily trade if the macro scenario changes.
  • CDS indices tend to outperform in moments of stress.
Global & Absolute Return Fixed Income

Kazmi-Mohammed-150x150px.jpg

Mohammed Kazmi
Senior Analyst Portfolio Manager & Macro-Strategist

Expertise

Impact investing - Contributing to a more sustainable future

What are the key features of impact investing?

Read more

Meistgelesene News

UBP in der Presse 17.04.2020

Smug Money podcast: Is impact investing the answer?

Good With Money (25.03.2020) – Our Co-Manager of the Positive Impact Equity strategy Rupert Welchman discusses the importance of impact investing in the current environment.

UBP in der Presse 23.01.2020

UBP, die remontada

Sphere (01.2020) - 2018 erreichte die Union Bancaire Privée praktisch wieder das 2007 verzeichnete Kundenvermöge, das aufgrund der Krise auf 65 Milliarden Ende 2010 gesunken war. Seither ist es der Bank gelungen, ihre Grösse zu verdoppeln und sich neu aufzustellen, um auf Wachstumskurs zu bleiben.

UBP in der Presse 03.03.2020

Diskretionäres Portfolio-management kombiniert Know-how und Flexibilität

Le Temps (02.03.2020) - Es ist mittlerweile eine Selbstverständlichkeit, dass sich die institutionelle Verwaltung und das diskretionäre Portfoliomanagement gemeinsamer Entscheidungshilfen und Verwaltungsmethoden bedienen.

Auch lesenswert

UBP in der Presse 03.07.2020

Asset TV Masterclass: impact investing

Impact investing is not a new concept, but it has been gaining ground since the start of the COVID-19 pandemic. So what does impact investment really involve and what are the prospects for impact solutions?

UBP in der Presse 26.06.2020

Smug Money podcast: Healthcare investing in EM

Good With Money (19.06.2020) – UBP Head of Global Emerging Equities Mathieu Nègre joins Sustainable(ish) founder Jen Gale in a podcast to discuss healthcare investing in emerging markets.

UBP in der Presse 23.06.2020

What impact investing needs as it grows

Investment Week (17.06.2020) - In response to growing concern about global issues, impact investing is in increasing demand, and has become essential in the view of many shareholders.