Despite the uncertain macroeconomic environment, we continue to believe that a strategy that relies on rates declining further to drive returns is a risky proposition. At current levels, interest rates would not have to increase much in order for investors … Continue reading
The possibility of tax reform coming after the November elections is one factor influencing the municipal bond market, along with interest rates, credit quality, and international risks.
With the ongoing European debt crisis, a slowdown in China’s economic growth, and concerns about a so-called “fiscal cliff” at the end of 2012 for the United States, market volatility jumped in the second quarter compared with the first. The … Continue reading
In the years leading up to the global financial crisis, growth across a number of countries was relatively homogenous. That changed in 2008, as nations implemented markedly different policy responses to the recession. Many emerging economies that sidestepped the debt … Continue reading
Generous yield spreads and a low default rate on corporate debt give high-yield bonds attractive investment potential in today’s market. Lower-rated bonds may offer higher yields in return for more risk.
With Europe a source of macro risk, the investment opportunities generated by long-term growth in consumer spending across the world’s emerging markets appear more attractive in a global perspective.
The unusual combination of challenges currently facing financial markets prompts investors to search for historic parallels. We find that today’s monetary and fiscal landscape looks a lot like that of Europe and the United Kingdom in the late 19th century. … Continue reading
Today’s low corporate default rate combined with attractive credit spreads and equity valuations provide an attractive climate for convertible securities, according to Putnam’s fundamental research.
Although macroeconomic risks continue to burden the economy, many stocks appear to offer attractive potential when viewed from the perspective of valuations.