Fixed Income

Today’s report recaps last week’s webcast and elaborates on its themes, delving into the empirical evidence underpinning our conviction that asset allocators should underweight equities sparingly and fleetingly. We remain tactically neutral and cyclically bearish.

2 years ago

Essentials

Agency MBS: Best Bang For Your Buck?

In its latest Special Report, BCA Research’s US Bond Strategy service considers the relative merits of four different fixed income investments in the current economic environment: 2-year Treasuries, 10-year Treasuries, Baa-rated corporate bonds and current…

2 years ago

FICC

Should A Wise Investor Choose A Treasury, Corporate Bond Or MBS?

Special Report

We consider the relative merits of four different fixed income investments in the current economic environment: 2-year Treasuries, 10-year Treasuries, Baa-rated corporate bonds and current coupon Agency MBS.

2 years ago

Bonds

Essentials

UK Inflation Is Still Sticky

On the surface, UK inflation appears to be on the right track. The May CPI release came in broadly within expectations. Headline inflation eased from 2.3%y/y to 2.0%y/y – directly on the BoE’s target for the first time since July 2021. Core CPI (excluding…

2 years ago

Essentials

Growth Unlikely To Overshoot ECB Forecast

The ECB delivered its first rate cut in June, moderating the degree of restriction rather than pivoting outright to easy monetary policy settings. Indeed, the rate cut was accompanied by an upward revision of inflation and growth forecasts. Since then,…

2 years ago

Essentials

RBA: Still Hawkish

The Reserve Bank of Australia kept its cash rate at 4.35% at its policy meeting on Tuesday, in line with market expectations. Australia’s monthly measure of headline inflation came in at 3.6% in April, still considerably above the midpoint of the RBA’s 2-3%…

2 years ago

Essentials

Falling Equity Risk Premia Remove Buffer For Stocks

The equity risk premium (ERP) allows investors to assess the additional compensation they are offered as an enticement to assume equities’ incremental risk. The ERP measures equities’ excess return by deducting the inflation-linked 10-year yield from the…

2 years ago

Essentials

Fed Easing Is A Tailwind For Gold

According to BCA Research’s Commodity & Energy Strategy service, a Fed pivot to rate cuts will provide gold prices with a tailwind. At first blush, the historical evidence is mixed. While gold rallied in the three months leading up to the start of…

2 years ago

FICC

A Golden Rule For Investing In Australian Inflation-Linked Bonds

In light of this week’s RBA decision to keep policy on hold, we look at the best possible trades in fixed income markets. In our view, inflation-linked bonds, relative to nominals remain a good bet.

2 years ago

Bonds

CoreMacro

Too Late To Sell France?

European assets are selling off as investors panic about the upcoming French election. Is this panic justified, and if so, for how long?

2 years ago

Europe

Fixed Income

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