Foreign investors dump Treasuries
Several countries drastically reduced their exposure to US government bonds in March. Treasuries worth $256.6 billion were sold, according to data published by the US Treasury.
According to analysts, the outflow was mainly driven by the fact that a number of emerging countries needed the money to support their own currency. The most important sellers were Saudi Arabia, Brazil and India. Saudi Arabia sold the most with $25.3 billion, but still owns $159 billion worth of Treasuries.
‘Dividends to fall 15-35% in 2020’
Global dividend yields are expected to fall between 15 and 35% this year as the coronavirus pandemic hits companies’ earnings, according to Janus Henderson Investors.
Schroders: Is now the time to own gold?
We look at whether gold’s strong recent performance can continue, given the macroeconomic backdrop the Covid-19 crisis has created.
Why ESG funds did better in the crisis
In the fastest and deepest correction we’ve ever seen, ESG strategies have held up relatively well. A webinar organised between Natixis Investment Managers and its affiliate asset managers Thematics AM and Mirova, the reasons behind this were discussed.
Europe needs debt mutualisation
Who will pay the debt, which has grown to such unsustainable levels in just a few months time? We need a new way to deal with debt, and we are all in this together, says Nicolas Forest, head of fixed income at Candriam. ‘The main risk today is not to change anything.’
AXA IM: How can pandemic bonds potentially help economies post-COVID-19?
What are pandemic bonds, and how are they used – and why might investors choose to invest in them?
'Balance sheets make the difference during market recovery'
Romain Boscher of Fidelity expects a sharp divergence in stock market performance during the recovery phase, with financial health as the decisive factor.
‘Earnings expectations continue to deteriorate rapidly, and we are now expecting a decline of at least 20% in the most favourable scenario, with a potential decline of 30-40% in the least favourable assumptions,’ says Boscher, Global CIO Equities at Fidelity International.
CSSF launches new website with hiccups
The CSSF has launched a new website. The site is supposed to offer ‘a more intuitive and personalised navigation and a number of enhanced features’, according to Luxembourg’s financial regulator. However, the new website has been displaying technical difficulties since its launch on Monday.
The new website is supposed to offer:
UBS AM: Developed markets to recover slower from corona crisis
Economic recovery in developed markets will be slower compared to markets like the Chinese and other North Asian markets.
AXA IM: COVID-19: Greening the recovery
The coronavirus outbreak has been a tragedy for many. The question now is whether the world can use this moment to build a less carbon-intensive economic model that could put the temperature goals of the Paris Agreement tantalisingly within reach.