1. Newsroom
  2. Asset TV Fund Selector: Fixed Income
Menu
UBP dans la presse 26.09.2018

Asset TV Fund Selector: Fixed Income

Asset TV Fund Selector: Fixed Income

What does the end of quantitative easing mean for bond investors? What should be the right exposure to emerging bond markets and why are active managers better equipped than passive ones to handle the return of volatility? Mohammed Kazmi, Portfolio Manager & Macro-Strategist Global and Absolute Return Fixed Income at UBP, recently participated in an Asset TV broadcast outlining the risk and reward trade-offs in fixed-income markets over the next six to twelve months.


 

With the period of extremely accommodative monetary policies – implemented through quantitative easing – coming to an end, fixed-income markets have found themselves under stress in recent months. Portfolio construction is getting more and more important in the higher-volatility regime that is beginning to take hold of the financial markets, states Mohammed Kazmi, along with other industry experts during a recent Asset TV broadcast on fixed-income funds selection.

According to UBP’s Portfolio Manager, it is not because they need to fight inflation that central banks are progressively removing liquidity, but rather because they feel comfortable with growth prospects.

With the macro outlook remaining positive and certain valuations becoming attractive after recent sell-offs, the actual tightening of monetary policies does not have to be seen as being broadly bad for financial markets, and risk markets in particular. Although investors tend to focus on interest rates hikes and rising volatility, there are actually a lot of opportunities, asserts Kazmi.

In this changing environment, where dispersion and volatility are on the rise, picking winners demands a much more active security selection. Finding pockets of value also requires an increasing use of liquid instruments for investors to be able to navigate through the more volatile markets and allow them to get more defensive or more aggressive depending on their assessment of market conditions.

As far as emerging bonds are concerned, notes Mohammed Kazmi, they are now going through a “test phase”, as some of the flows driven by quantitative easing are still leaving these markets. In contrast to previous crisis, emerging markets seem so far to be immune to the risk of contagion thanks to improved fundamentals. Nevertheless a cautious and selective approach remains necessary in the short to medium term.

Global & absolute return fixed income

Kazmi-Mohammed-150x150px.jpg

Mohammed Kazmi
Portfolio Manager & Macro-Strategist

Expertise

Impact investing - Contributing to a more sustainable future

What are the key features of impact investing?

Read more

Actualités les plus lues

UBP dans la presse 29.01.2021

Fixed income outlook: Positive environment for credit

Institutional Money (27.01.2021) - Despite an accelerating Covid-19 spread into year-end, risk markets concluded 2020 on a strong note as investors took confidence from the commencement of the vaccine rollout in the US and UK. 

UBP dans la presse 03.02.2021

Compelling opportunities in Japanese small-cap techs

Funds Society (28.01.2021) - An improvement in corporate governance, a stable government and a leading edge in digitalisation and robotics are making the Japanese small-cap segment a rich source of attractive opportunities for selective investors, says UBP Senior Analyst Cédric Le Berre.

UBP dans la presse 01.03.2021

La conformité à l’ère de la ‘RegTech’

Le Temps (01.03.2021) - Depuis deux décennies, l’adaptation des banques privées suisses à la prolifération de nouvelles réglementations, au renforcement des exigences de conformité fiscale, et à la globalisation de la clientèle s’apparente véritablement à une épreuve d’endurance. 


A lire également

UBP dans la presse 28.07.2021

Allier impact positif et profitabilité

Bilan (26.07.2021) - S’il existe traditionnellement une forte divergence entre nos modes de vie et nos approches d’investissement, la situation a récemment évolué. Un nombre croissant d’entreprises cotées s’attachent ainsi désormais à comprendre leur place dans le monde en dépassant le simple cadre des profits financiers.

UBP dans la presse 26.07.2021

Le Libor est mort, vive le Saron !

Le Temps (26.07.2021) - Le compte à rebours final est lancé. Dans moins de six mois, le 1er janvier 2022, le monde de la finance basculera dans l’ère post-Libor (London Interbank Offered Rate).

UBP dans la presse 21.07.2021

L’amélioration de la gouvernance des entreprises au Japon renforce l’attrait de ce marché

Agefi Actifs (23.07.2021) - L’amélioration significative de la gouvernance des entreprises au Japon – marquée notamment par la place plus importante accordée aux femmes dans les instances dirigeantes – peut constituer un catalyseur de longue durée venant renforcer le dynamisme du marché japonais.