One of BCA Research’s Global Fixed Income Strategy service’s key views is to underweight the US in global bond portfolios, and favor countries where yields have a lower sensitivity to rising US yields. We expect the…
This is our last report of this year. We will resume publications in January. The EM strategy team wishes you a happy holiday season and a prosperous new year. Chart Of The weekFiscal Thrust Is A Major Negative In 2021 Emerging…
Feature Feature ChartEconomies Have Already Snapped Back In this final report of a tumultuous 2020, we present our key views for 2021 in the form of ten questions and answers during a recent conversation with a client. 1. …
Highlights Global growth will accelerate over the course of 2021 as COVID-19 vaccines are distributed and economic confidence improves in response. Longer-term global bond yields see some upward pressure as growth picks up, but global…
Empirically, the current yield to maturity gives a robust sense of the returns of 30-year German government bonds over the coming five years. At the present juncture, the yield of -0.2% suggests that over the next five years, the…
BCA Research’s US Bond Strategy service concludes that investment-grade corporates will outperform Treasuries in 2021, but the potential for further spread compression is limited. Junk spreads have more room to tighten, and…
From 1990 to today, US Treasuries and global equities have delivered equivalent returns of roughly 7.5% on an annualized basis. This means that bonds have been the superior investment because of their significantly lower…
Highlights With a vaccine already rolling out in the UK and soon in the US, investors have reason to be optimistic about next year. Government bond yields are rising, cyclical equities are outperforming defensives, international stocks…