Insight Investment

Central banks might believe they have won the battle against inflation – but we believe otherwise. Explore the seven structural issues that we believe will shape the medium-term inflation outlook in our latest paper: https://bit.ly/43GSe5R Capital at risk. For professional investors only.

While equity indices favour the largest and most successful companies, fixed income indices are skewed towards entities with the most debt. This can mean highly indebted countries or sectors become a larger part of the index. This is one of the principal inefficiencies of investing in fixed indices. Read our guide on how Insight seeks to exploit such inefficiencies: https://bit.ly/4hGw1IE Capital at risk. For professional investors only.

How can illiquid assets serve liquidity requirements? If assets pay coupons or simply mature, then concerns about not being readily saleable in the open market may be overstated. In this way, we believe secured finance serves a role in meeting certain liquidity requirements despite its relative illiquidity. Read more here: https://bit.ly/3wLJUDa Capital at risk. For professional investors only.

Abdallah Nauphal, CEO Insight Investment, spoke to Bloomberg News and noted that the UK's planned pension reforms may shield the gilt market from an expected rise in government bond issuance and slow the trend of insurers taking over pension plans, tempering a potential bond selloff of c.£500 billion over the next decade. Click here to read the article (subscription required): https://bloom.bg/4iK2QW7 Capital at risk. For professional investors only.

Insight’s team has helped pioneer a trading protocol called “credit portfolio trading” that we find can significantly reduce trading frictions in markets like high yield. Insight’s senior portfolio manager, Manuel Hayes, explains how the team designs fixed income alpha models for their systematic strategies. Watch the full video: https://lnkd.in/e5Rj48NU To find out more about systematic fixed income, click here: https://lnkd.in/ex6k9zxb Capital at risk. For professional investors only.

Over the past 20 years, the performance of different fixed income classes has shown little consistency. Each sub-asset class has experienced periods of strength and weakness at different times. This variability highlights the worth of a strategy that can adapt to changing market conditions. Learn more about multi-sector credit here: https://bit.ly/4hFpsFS or register for our webinar ‘Expanding your scope: investing across credit markets’ here: https://bit.ly/3DvJpAS Capital at risk. For professional investors only.

Today’s environment of high volatility and higher yields give greater room for manoeuvre for absolute return bond strategies. This is partly because active opportunities can be accessed without having to take interest rate or duration risk. Learn more here: https://bit.ly/4hcktwf Capital at risk. For professional investors only.

Many investors believe active managers struggle to outperform or even match their benchmarks. Research, repeated over decades, suggests that this is certainly true of many active equity strategies, but it isn't generally true in fixed income. Learn why in Insight's overview of the way active investing can more easily exploit valuation opportunities in fixed income than in equities: https://bit.ly/4hGw1IE Capital at risk. For professional investors only.

Stephanie Chan, portfolio manager, said: “The US economic policy uncertainty index has reached new highs not seen since the Covid pandemic in 2020. The uncertainty is likely related to new tariffs, both actual and threatened, placed by the US on trade partners such as Canada, Mexico, Europe, and China. These countries and regions have also planned retaliatory measures against the US. Furthermore, there is uncertainty around US domestic fiscal policy and the Fed’s monetary policy. The specific path forward for both fiscal and monetary policy will depend on the trajectory of US growth and inflation. Markets, in turn, are experiencing a pullback as they digest headlines around tariffs and consider the broad implications on trade and global growth.” Click here to view our chart of the week: https://bit.ly/4b9z354 Capital at risk. For professional investors only.

We believe systematic fixed income is an exciting prospect for investors. However, we believe that it offers more value in markets like high yield, leveraged loans and emerging market debt than elsewhere. Insight’s senior product specialist, Syed Zamil explains why. Watch the full video here: https://lnkd.in/eTNQmdqr To find out more about systematic fixed income, click here: https://lnkd.in/ex6k9zxb Capital at risk. For professional investors only.