Market Update

Gordon Shannon, Partner and Portfolio Management, highlights climate change as one of the main topics which gathers a tremendous amount of attention within ESG investing, discussing the Paris Agreement, lack of data and poor transparency. 

Elena Rinaldi, Portfolio Management, discusses how banks have benefited from many years of ultra-cheap financing from central banks – which is now coming to an end and giving way to a more dedicated capital market funding needs - and touches on what the results of these changes are.

Charlene Malik reflects on a tricky quarter for markets, highlighting the behaviour of the US Federal Reserve, the ECB and the Bank of England. Charlene then discusses the ways in which the MSB team have responded to these Q3 events.

In our Investment Grade quarterly update, Gordon Shannon, reflects on government bond yields, which accelerated sharply at the end of Q3, as well as commenting on the behaviour of the European Central Banks over the quarter and the soft-landing 'fairytale' markets had hoped for.

Elena Rinaldi gives an update on the market, highlighting the peak in rates in the quarter, the performance of ABS for the quarter, and delving deeper into the primary issuance activity over the summer months.

Charles Dennis, Portfolio Management, states that through having access to detailed consumer data, the team are able to build a very complete picture of the consumer’s profile. Alongside this, he highlights that inflation across the UK, US and Europe appears to be on its way down, which is a slight pressure ease for central banks, signalling we are at or near peak rates. 

What has the consumer experienced in recent times and what does this slight easing mean for the consumer?

Dillon Lancaster, Portfolio Management, provides an update on European banks and AT1s and the bout of volatility they suffered earlier this year, following the US regional bank crisis and Credit Suisse.

Jack Daley, Portfolio Management, tackles a common question: When is the right time to add duration? This is a topic we frequently explore and debate.

Johnathan Owen, Portfolio Management, reflects on why the AT1 market has been brought into the spotlight this year, following the events of the US regional banking crisis and Credit Suisse.

It is our view that without a doubt 2022 was a year to forget for the bond market. Whether you held government bonds, high end corporate credit or riskier high yield paper, you would have taken a knock as steep increases in interest rates across the globe sent bond prices tumbling. 

After what can only be described as a relatively dire year for fixed income in 2022, during which spiralling inflation led to one of the most aggressive rate hiking cycles on record, we believe the market for bonds is now looking much healthier.

George Curtis, Portfolio Management explores how our portfolio will perform in the event we don’t get the expected soft landing.