The year 2018 had started on such a promising note – is what we all were thinking. But at the beginning of February, the market taught us a lesson. As a result, the discussions at our first Investment Committee of the year at the beginning of February were interesting ones.
Article on tag "bonds"
Inflation worries burdening stock exchanges – part 2: the macro perspective
Equity indices have undergone a global correction in the past days. The Dow Jones index has shed more than 10% from its January high. What is the macro-economic reason for the correction?
![Capital markets outlook for 2018: Will the party hold on? Capital markets outlook for 2018: Will the party hold on?](https://blog.en.erste-am.com/wp-content/uploads/2017/12/0B6A6843-370x210.jpg)
Capital markets outlook for 2018: Will the party hold on?
2017 is drawing to an end, and the bottom line is positive. The outcome is significantly better than we had expected. Since the financial crisis in 2008, the global economy has never expanded more quickly and especially concertedly than in 2017. Also, inflation has surprised on the downside, falling short yet again of the expectations held by central banks and analysts.
US debt ceiling keeping the financial markets on their toes
The Trump administration should be keeping the financial markets on their toes in the coming weeks. Yet again, the issue is the government debt which will soon reach its statutory maximum.
Germany: is the economy about to face a hot summer?
The IFO business climate index calculated by the Munich-based IFO Institute is regarded as the most important German economic indicator. At 115.1, the value released for June last week was the highest since the launch in January 1991. It was also clearly above the value that had been expected by the financial analysts on average. The signs for substantial economic growth in Germany seem favourable.
![A niche product with solid returns: hybrid and subordinated bonds with investment grade rating A niche product with solid returns: hybrid and subordinated bonds with investment grade rating](https://blog.en.erste-am.com/wp-content/uploads/2017/06/iStock_106416219_XLARGE-370x210.jpg)
A niche product with solid returns: hybrid and subordinated bonds with investment grade rating
Author: Christin Bahr, Product Management Securities Erste Group It has been half a year since the launch of the new hybrid bond fund. Reason enough for us to talk to Roman Swaton, Senior Fundmanager.
The global economy based on the Goldilocks principle
The global economy is growing moderately, inflation is low, and the monetary policy is loose. This environment supports many asset classes from bonds to equities. The political uncertainty has been absorbed rather well so far too. Will this situation last?
![Curves (part 3) – peaks and troughs Curves (part 3) – peaks and troughs](https://blog.en.erste-am.com/wp-content/uploads/2017/04/Fotolia_119630342_L-370x210.jpg)
Curves (part 3) – peaks and troughs
Investing for the long or the short term? This is the question bond investors ask. In this blog, we will have a look at German government bonds with a remaining time to maturity of two years (2Y; short) and ten years (10Y; long). More specifically, we are interested in the yield differential between the long- and the short-term interest rates. The technical term here is the “slope of the yield curve”.
![Curves (part 1) – not only a topic for race drivers Curves (part 1) – not only a topic for race drivers](https://blog.en.erste-am.com/wp-content/uploads/2017/04/20160530_PD0238.HR_-370x210.jpg)
Curves (part 1) – not only a topic for race drivers
Have you ever been to the Monte Carlo F! Grand Prix? If so, you may have witnessed the problem of turning into a curve too late. The race car hits the crasher barrier faster than the driver can react, and a lot of money has to be thrown at the repair job.
![Emerging markets bonds in demand Emerging markets bonds in demand](https://blog.en.erste-am.com/wp-content/uploads/2016/10/iStock_Bangkok_Thailand_Tourists_ride_Khaosan_Road_Nov_2013-370x210.jpg)
Emerging markets bonds in demand
Economic growth in the emerging markets has picked up substantially, while that in the industrialised economies has been rather stable. This has led to an increase in the growth differential in the emerging markets’ favour. Investor demand for emerging markets bonds has been on the rise in search of higher yields and interest rates.