TwentyFour Asset Management LLP

Market news hasn't taken a holiday this summer - from the release of the Fed July 30-31 policy meeting minutes, to non-farm payrolls data from the Bureau of Labour Statistics, to flash PMI surveys for Europe and the UK. Considering the latest data releases, Felipe Villarroel believes that a rate cut from the Fed on September 18 is a done deal, and doubts that the non-farm payrolls data will change the Fed's views too much. He also stated that trends that are in place in the US and Europe are continuing to develop roughly as expected, in spite of the recent volatility. Find out more on his thoughts in our latest blog: https://okt.to/XiZop3 #monetarypolicy #labourdata

The title of this year’s Jackson Hole Economic Symposium is “Reassessing the effectiveness and transmission of monetary policy”, an important question given the remarkable resilience developed market economies have shown to the sharpest interest rate hiking cycle we have seen in four decades. All eyes and ears will be on Fed Chair Jerome Powell, as he delivers his speech, with the market looking for any clues on potential interest rate cuts, following the sell-off and subsequent recovery sparked by labour market data earlier this month. Read more in the latest blog by George Curtis: https://okt.to/7IEiRU #monetarypolicy #resilience

When the Bank of England cut interest rates for the first time in four years earlier this month, we thought the move – made on a knife-edge 5-4 vote – had come a little too early. After a busy week of UK economic data, Jack Daley, CFA examines whether the Bank of England has been vindicated, breaking it down to the following points: 1. Unemployment and wage growth look promising 2. Inflation steady but services the key 3. Construction, manufacturing supporting growth 4. Retail sales adding to growth momentum 5. Trends make case for UK fixed income Read more: https://okt.to/KEM67j #inflation #banks

Positioning in fixed income markets has been tricky this year, but credit markets have performed strongly. Eoin Walsh (Partner, Portfolio Management) discusses opportunities in European credit despite rate headwinds and revised expectations for rate cuts. He highlights why European high-yield sectors are attractive and the potential they hold. Watch the full video here: https://okt.to/iXDUda

Recent US Consumer Price Index (CPI) inflation data brought a sigh of relief to markets, showing July inflation mostly in line with expectations. Although there was a larger than expected decline in core goods inflation, there was an increase in core services inflation driven by rising shelter costs. Read more to find out Felipe Villarroel's analysis of the latest data release: https://okt.to/6lZUWY

Chris Bowie (Partner, Portfolio Management), from our investment grade team, talks about why we are shifting our duration strategy. For the last two and a half years, we have maintained an underweight duration due to inflation and interest rate hikes. Now, with a steepening yield curve, we are increasing duration across all investment grade funds to capitalise on higher yields. Watch the full video here: https://okt.to/ToneFm

Market attention in the government bond market has rapidly turned from central banks holding rates "higher for longer" to the potential for "lower and sooner." Until recently, higher for longer rates were seen as a potential risk, however, the narrative is shifting as weaker US labour market data points to faster rate cuts from the Federal Reserve on the horizon. Jakub Lichwa, Portfolio Management, provides his view on what this could mean for the market and why we maintain a positive view on AT1s. Read more here: https://okt.to/FU1mMR #banks #governmentbonds

Recent headlines have painted a nervous picture of the health of consumers across Europe. However, Ellie Aylen from our Asset-Backed Securities team offers a different perspective. She believes that despite a mild weakening in performance metrics, consumers have remained resilient - outperforming our base case expectations in nearly every area. Dive deeper into the data from our recent sector reviews to learn more: https://okt.to/TZRlXp #assetbackedsecurities #consumerhealth

AT1s have hit the headlines, with Julius Baer announcing a call of its $300m Additional Tier 1 (AT1) instrument. Jakub Lichwa believes that this call is a reflection of how issuers are carefully balancing various factors - such as market practice, reputational risks, and access to debt markets - when making call decisions. The reset level is just one piece of a much larger puzzle. He shares his insights in the latest blog: https://okt.to/orl0zy #AT1bonds #banks

With just one month to go until our Annual Fixed Income Conference, you won’t want to miss out on: • Our ever popular macro outlook • Inspiring keynote session • Engaging live Q&A sessions exploring current themes we’re seeing in fixed income • Guest speaker Professor Brian Cox! Register now: https://okt.to/0cxuoq #TwentyFourAnnualConference #FixedIncome #FixedIncomeConference