"Confidence in Bonds Is Tumbling" The global bond market seems to be at a critical juncture, as shown by this chart. The rising ratio of gold to Treasuries reflects a troubling reality: investors are losing confidence in government debt, even with increased transparency efforts. In the UK, Reeves’ “tax and spend” budget highlights that transparency alone won’t reassure markets when growth is sluggish, and debt projections are high. The post-speech reaction gilt yields surging after the Office for Budget Responsibility report reveals just how uneasy markets remain. In the U.S., Yellen’s cautious approach may offer temporary stability, but the underlying debt trajectory remains unsustainable. Meanwhile, China’s stimulus focus on debt replacement rather than growth only deepens skepticism. Each major economy faces its challenges, but the underlying issue is the same: investor patience is wearing thin, and confidence in bonds is eroding. Are we approaching a turning point where traditional safe-haven assets are being reassessed? #Investing #Bonds #MarketConfidence #FiscalPolicy #Gold #GlobalEconomy
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Sovereign and corporate bond markets have reached a critical juncture. Valued at ~USD 100 trillion, similar in size to global GDP, they face unprecedented challenges from increased borrowing needs and higher rates, with a large volume of bonds maturing in the next 3 years. Learn more in the Global Debt report 🔽 oe.cd/debt
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Today we launched the first edition of the Global debt report
Sovereign and corporate bond markets have reached a critical juncture. Valued at ~USD 100 trillion, similar in size to global GDP, they face unprecedented challenges from increased borrowing needs and higher rates, with a large volume of bonds maturing in the next 3 years. Learn more in the Global Debt report 🔽 oe.cd/debt
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From Investment IQ. Emerging market debt saw strong performance in Q3 2024, supported by favourable market conditions, including the US Federal Reserve's rate cuts and a weaker US dollar. State Street Global Advisors 🔗 Read the full article on Investment IQ: https://incm.pub/40XbytW #investing #assetmanagement #wealthmanagement #finance
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Chief Investment Officer & Member of the Executive Committee at Syz Group ¦ 200,000+ followers
The liquidity index for US government securities is deteriorating significantly, now at its worst levels since the European debt crisis in 2011. Notably, it’s already more severe than the environment during the Covid crash in 2020. What is even more alarming today is that this is all happening while the #US currently has one of the largest interest rate differentials compared to other developed economies in history, yet liquidity appears to be eroding. Source: Tavi Costa, Crescat Capital, Bloomberg
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What are the implications of higher interest rates for sovereign emerging-market debt? MFS Investment Management explores the long-term fundamentals of the asset class. In brief: 💭 US Federal Reserve rate hikes appear to have ended, and the market now expects rate cuts in 2024. However, with inflation pressures persisting and robust US economic growth and labor market and productivity, the probability that US rates will settle well above post-Global Financial Crisis (GFC) and pre-Covid levels has increased. 💭 EMD presents an attractive opportunity for the long-term fixed income investor with a high tolerance for risk, given strong fundamentals, yield opportunity and duration exposure, but an active approach with careful considerations to country and issuer selection will be critical in an environment in which rates remain above the lows of the past decade. Full report available here: https://cfainst.is/45upxaV #ARXCFAInstitute *This report is provided by MFS Investment Management, visit here for more: https://cfainst.is/3UOdFf0
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Interest rates cut: What does it mean for you? 💭 With both the US and SA lowering rates, bonds are looking like the safer bet for now. But what does this mean for equities and your investment strategy? Read our latest blog post to find out how to navigate these market shifts and make the most of the current opportunities - https://lnkd.in/dfy8Rpw5 #newblogpost #financialblog #financeblog
The wait is over, interest rates have been cut. - JWR Group
https://www.jwr.co.za
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With foreign investment declining and increased buying of foreign securities by Canadian investors, the economy recorded a net outflow of funds of $11.2 billion from cross-border securities transactions in June. StatsCan noted that the outflows in June followed monthly inflows in April and May that totalled $57.8 billion.
Economy sees securities outflows in June: StatCan
https://www.advisor.ca
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With foreign investment declining and increased buying of foreign securities by Canadian investors, the economy recorded a net outflow of funds of $11.2 billion from cross-border securities transactions in June. StatsCan noted that the outflows in June followed monthly inflows in April and May that totalled $57.8 billion.
Economy sees securities outflows in June: StatCan
https://www.advisor.ca
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How has global debt shifted in mature and emerging markets post-COVID? Check out the latest data from the IIF Global Debt Monitor to find out. #GlobalDebt #EmergingMarkets #Finance #GlobalEconomy
Charted: $315 Trillion in Global Debt, by Sector
pwc.smh.re
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How has global debt shifted in mature and emerging markets post-COVID? Check out the latest data from the IIF Global Debt Monitor to find out. #GlobalDebt #EmergingMarkets #Finance #GlobalEconomy
Charted: $315 Trillion in Global Debt, by Sector
pwc.smh.re
