Three bond themes for a changing macroeconomic backdrop

PARTNER INSIGHT: Markets entered 2018 with the wind at their back: investors saw double-digit equity returns, strong momentum and expectations that the synchronised global growth and corporate earnings recovery would continue. However, as recent volatility suggests, some storm clouds could be gathering.

Markets entered 2018 with the wind at their back: investors saw double-digit equity returns, strong momentum and expectations that the synchronised global growth and corporate earnings recovery would continue. However, as recent volatility suggests, some storm clouds could be gathering. Central banks globally are moving away from ultra-loose monetary policy, and while all of these moves are well-telegraphed, the actual experience could prove too onerous for economies and asset markets that have become addicted to easy financial conditions. Equally, the risks of an inflation overshoot ...