Significant focus on the uncertainty of the US macroeconomic backdrop and its potential headwinds on the market remain top of mind for investment opportunities globally. Against this cautious outlook, we asked the experts from Invesco’s bank loan, direct lending and distressed credit teams to share their views as the first quarter of 2025 begins.
We share our scenario analysis to help clients navigate an uncertain landscape. Our base case is that inflation has peaked – in which case we favour high yield credit and emerging market assets. Should inflation prove more persistent, with a deeper recession on the cards, then cash and government bonds are the order of the day. Read on for details – and for why we favour investment grade credit in both scenarios.
Government bonds tend to perform well in turbulent times and can help diversify risk in multi asset portfolios. Often viewed as a possible buffer for volatile equity and other riskier markets, government bonds serve as a core allocation for investors.
Private Credit is an all-weather asset class for a diversified portfolio that works in a variety of economic environments, offering historically attractive current income.
After a dramatic market reset in 2022, the high yield market is now living up to its name.
Explore the key risks and benefits, as well as some case studies from our investment teams.
Discover why emerging market local debt can potentially outperform over the next couple years after the asset class sold off in 2022. Find out more.
Interest rate hikes have been used to combat inflation in emerging markets. But will the different approaches adopted by central banks lead to opportunities?
Tapering, tightening and transitory inflation. As we enter the home stretch of an eventful 2021, these are some of topics that are generating questions from clients right now. Matt Brill shares his views on how these issues may impact core fixed income portfolios.
Join us on the latest stretch of our world tour! Wim Vandenhoeck and Gerald Evelyn arrive in the Czech Republic and chat all things inflation.
US inflation is running at a high level. Some of this price pressure is likely to be transitory, reflecting the bounce-back in economic activity as the world reopened. But there is considerable evidence of persistent price rises too. We examine the clearest example of this: shelter.
A sizeable gap has built up between UK and Euro area interest rates. How does monetary policy differ between their two central banks?
Global markets continue to be impacted by inflation concerns, and with the US Federal Reserve indicating an increase in interest rates by next year, investors are looking for assets that have the potential to offer more resilience to higher inflation income streams with some inflation protection. We believe well executed real estate debt investments could offer just that.
We believe recent regulatory tightening in China is not inconsistent with the broader goals of the 14th five-year development plan to build the country into a modern socialist country.
The events in Chile since 2019 have underlined the importance of ESG factors for longer-term value creation.
