M&G Investments

What’s behind the diverging outlook for US and European banks, and what does this mean for bond and equity investors?

The sixth in a series of videos looking at the change in investor behaviour over the years and how asset managers have responded, Global Head of Distribution, Jonathan (Joffy) Willcocks reinforces the importance of ESG principles when thinking about investments.

In this month’s update Ritu Vohora, Investment Director, reflects on the Q1 earnings season. It’s been exceptional so far, as least compared to expectations. Are we at ‘peak earnings’?

After a stellar 2017, eurozone economic data releases have disappointed recently. This week’s BVTV discusses the region’s prospects, focusing on the key learnings from the latest ECB meeting, why the US Treasury sell-off has so far failed to have a material impact on European rates, and implications for credit markets.

Jim Leaviss, Head of Retail Fixed Interest, recently updated an old chart from 2007 showing the relationship between a flattening yield curve and credit spread levels. Back then, this classic leading indicator of recessions correctly predicted a big sell-off in corporate bonds. The rest, as they say, is history.

In this 2 minute update, Alex Araujo, Fund Manager for M&G's Global Listed Infrastructure Fund discusses the impact of rising interest rates on listed infrastructure, as well as what type of infrastructure tends to do well in this environment and why.

The current Conservative Government has pledged to meet its 2015 manifesto commitment to deliver one million homes by the end of 2020 and to “deliver half a million more by the end of 2022“. For this to be met, completions would need to rise to levels not seen since the late 1970s.

Concerns have shifted to the potential for corporate profits to be undermined if a trade war erupts with China announcing a new round of tariffs on US products.

Volatility returned in February, but not the kind of volatility we have been used to for much of the period since the financial crisis.

With new Fed Chair Jerome Powell now in the hot seat, bond investors are keen to understand whether he will be more hawkish than his predecessor, Janet Yellen. Turning to the UK, the market is now pricing in a high probability that the Monetary Policy Committee hikes interest rates in May, but the flattening of the gilt curve may suggest the market doesn’t entirely share the Bank of England’s optimism on the UK economy.

March 22nd was World Water Day which aims to focus attention on the importance of water not only in our daily lives, but also for the sustainable development of the global economy.

Toys “R” Us announced last week that it has so far failed to find a buyer or reach a debt restructuring deal, raising the prospect of widespread store closures and job losses. While a rescue package could yet emerge, the future is looking far from rosy for the toy store.

The United States government routinely finances itself through short-term debt, which is normally less expensive than long-term debt, due to the upward sloping nature of the U.S. yield curve. This cost saving does increase the risk of default. Rollover risk arises any time short-term debt is used to finance long-term spending. It is what keeps debt management officials up at night.

In this month’s update Ritu Vohora, M&G's Investment Director, examines the implications of February’s spike in market volatility. The bull market is likely still intact, but we are entering choppier waters.

President Trump has sent shockwaves through the global business community with his decision to impose tariffs on steel and aluminium imports to the US. Randeep Somel, deputy fund manager in M&G’s equities team, joined Nicolo Carpaneda this morning to discuss.