TCW’s Post

Concerns are growing over the potential need to see something ‘break’ in the taxable market in order for Fed Chairman Powell to put the interest rate engine in reverse and for cuts to happen. Read UBS-AM investment pros’ views in The Bond Bulletin. #markets #assetmanagement #fixedincome #thoughtleadership

Concerns are growing over the potential need to see something ‘break’ in the taxable market in order for Fed Chairman Powell to put the interest rate engine in reverse and for cuts to happen. Read UBS-AM investment pros’ views in The Bond Bulletin. #markets #assetmanagement #fixedincome #thoughtleadership

Concerns are growing over the potential need to see something ‘break’ in the taxable market in order for Fed Chairman Powell to put the interest rate engine in reverse and for cuts to happen. Read UBS-AM investment pros’ views in The Bond Bulletin. #markets #assetmanagement #fixedincome #thoughtleadership

Concerns are growing over the potential need to see something ‘break’ in the taxable market in order for Fed Chairman Powell to put the interest rate engine in reverse and for cuts to happen. Read UBS-AM investment pros’ views in The Bond Bulletin. #markets #assetmanagement #fixedincome #thoughtleadership

Concerns are growing over the potential need to see something ‘break’ in the taxable market in order for Fed Chairman Powell to put the interest rate engine in reverse and for cuts to happen. Read UBS-AM investment pros’ views in The Bond Bulletin. #markets #assetmanagement #fixedincome #thoughtleadership

Why was this so combination of mortgages and high finance so dangerous? Because they were mixing markets, and they were blind to risk. In a footnote in The Big Short, Michael Lewis explains that this risk calculation was a challenge for the International Swaps and Derivatives Association (ISDA). “ISDA had been created back in 1986 by my bosses at Salomon Brothers, to deal with the immediate problem of an innovation called an interest rate swap. What seemed like a simple trade to the people doing it — I pay you a fixed rate of interest in exchange for you paying me a floating rate — would end up needing a blizzard of rules to govern it. Beneath the rules was the simple fear that the party on the other side of a Wall Street firm’s interest rate swap might go bust and fail to pay off its debt. The interest rate swap, like the credit default swap, exposed Wall Street firms to other people’s credit, and other people to the credit of Wall Street firms, in new ways.”

Fed cuts are likely the next course of action, but the timing and the amount of cuts should keep market volatility elevated. Read UBS-AM investment pros’ views in The Bond Bulletin. #markets #assetmanagement #fixedincome #thoughtleadership

Why cash isn’t king : https://okt.to/6f1SCL “While temporarily worthwhile, holding cash tends to be less rewarding than a diversified portfolio.” Kevin Thozet Cash and cash equivalents have been performing well over the past two years. Better than a diversified portfolio allocated to both equities and bonds (sections in grey correspond to cash faring better than a diversified portfolio) in an environment where there were few places to hide as the worst bear market in fixed income markets continued to unfold (1). This phenomenon has possibly contributed to the success of the recent tapping of domestic savings by European governments (2). While in hindsight holding cash has been temporarily more rewarding that holding bonds and equities, looking in the rear view mirror has seldom been the best guide for future returns : https://okt.to/9pnUmN #Investment #Investing #Marketingcommunication #Assetmanagement (1) A US 10 year bond has lost over the past 3 years as much as the S&P 500 from top to lows in the midst of the COVID crisis. And a US 30 year bond has lost over that same period as much as the S&P 500 from top to lows in the midst of the Great Financial Crisis. (2) Italian BTP Valore, Belgium Bons Van Peteghem raising close to EUR 20 billion each in a matter of days.

Is tight monetary policy finally achieving the desired effects? Is the #bond market still bracing for a recession? Our Taxable Bond Team takes us through how they’re interpreting the recent interest-rate roller coaster: https://lnkd.in/dC2i9akz GW&K Investment Management #bonds #taxablebonds #investing #QIR #2Q24

Trading vs. Investing: What's the Difference? 💹 #Investing is a long-term strategy that involves acquiring and holding a diverse portfolio of assets, such as #stocks, #bonds, commodities, currencies, and alternative investments, with the expectation of capital appreciation over time. It requires patience and a steady hand, as investments are typically held for years. 📈 Trading, on the other hand, is a more active and short-term approach. It encompasses various styles like #scalping, day trading, swing trading, and position #trading, each with its own set of tactics and timeframes. Traders aim to profit from short-term price fluctuations, often buying and selling assets within the same trading day. Learn which path to choose, what the associated risks are, and gain more insights with Aaron Hill, Market Analyst at FP Markets UK https://iii.hm/1mrr FP Markets (First Prudential Markets) #RiskManagement #FinancialMarket #SwingTrading #MarketAnalysis #fx #ForexTrading #DAX #USD #FinancialMarkets