Can active management pay for itself in fixed-income funds?

While using low-cost bond ETFs for the fixed-income portion of a portfolio seems like the right approach, some say active bond fund management may be a better fit. Source: MoneySense With seemingly perpetual low interest rates—and even the threat of negative interest rates, as seen in parts of Europe and elsewhere—does it make sense to…

Read More

Rush to Green Sparks Concern of Bubble in ESG Assets

What looks on the surface like a “bubble” in the so-called “Green” ESG trade may well become the new normal. Source: Bloomberg via GARP (Bloomberg) — The overall market may be held in sway by developments in the coronavirus outbreak, but demand has been buoyant for stocks based on environmental, social and governance factors. So…

Read More

AI Will Transform Financial Services Industry within Two Years

The comprehensive and global study confirms that AI is affecting the financial system at an accelerating pace. Source: moderndiplomacy A new survey released by the World Economic Forum and the Cambridge Centre for Alternative Finance (CCAF) finds nearly two-thirds (64%) of financial services leaders expect to be mass adopters of AI in just two years…

Read More

Hunt For Yield Boosts Corporate Bond Sales and Prices

Investment-grade corporate bond issuance has reached $140 billion this month, the second strongest January in the past decade behind 2017. Source: The Wall Street Journal Corporate bond prices pushed higher Friday, extending a rally that has spurred a wave of issuance by companies of all kinds. New bond sales by U.S. high-yield and investment-grade companies…

Read More

Green bonds to the fore as investors hedge against climate risk

Green and sustainable bond issues hit record-breaking levels in Canada in 2019 with attractive financing levels, appealing to a more diversified investor base. Source: Financial Post Growing pressure across financial markets to consider environmental impact and risk as a major plank in investment decisions helped push green and sustainable bond issues to record-breaking levels in…

Read More

Assets Invested in U.S. ETFs/ETPs Reach Record $4.42 Trillion At End of 2019

ETFs/ETPs listed in US attracted $56.15 billion in net inflows with Equity products dominating Fixed Income. Source: Nasdaq ETFGI, a leading independent research and consultancy firm covering trends in the global ETFs/ETPs ecosystem, reported today that ETFs and ETPs listed in United States gained net inflows of US$56.15 billion during December, bringing year-to-date net inflows…

Read More

Central-bank easing triggers record corporate bond issuance

Companies have taken advantage of low borrowing costs and high demand to sell more debt, allowing themselves to drop down the credit-ratings spectrum. Source: Financial Times Companies across the globe took advantage of lower borrowing costs to sell a record amount of bonds in 2019, prompting renewed concerns among policymakers about soaring levels of debt….

Read More

Canada should follow U.S. Treasury’s lead and issue 20-year bonds, Sun Life says

Sun Life Financial Fixed Income Portfolio Manager Randall Malcolm suggests Canada should begin issuing 20 year bonds, following the lead of the US Treasury with its own plans to do so. Source: Financial Post Canada should follow the U.S. Treasury’s lead and issue 20-year bonds, according to Sun Life Financial Inc.’s asset management unit. Debt…

Read More

The Yankees are coming! U.S. firms rush to euro debt markets

The reverse Yankee boom is welcome news for European bond buyers disappointed at the yield collapse sparked by the ECB’s asset purchase program. Source: The ChronicleHerald LONDON (Reuters) – From Harley Davidson to Colgate-Palmolive, U.S. companies are flocking to borrow in euros and their record issuance is breathing life into a market where yields have…

Read More

BlackRock attracts record inflows as stock markets soar

World’s largest asset manager is one of biggest winners from shift to passive investing Source: Financial Times BlackRock attracted a record amount of money from investors last year, as the bull market in stocks and bonds cemented its status as the world’s largest asset manager. The company’s funds sucked in $429bn last year, more than…

Read More