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Macroeconomics

END OF THE ROAD FOR CREDIT

09 April 2019

Equity markets have rebounded resoundingly from the lows seen last December. So have credit markets. Trackers for US high-yield bonds have completely wiped out the loss seen in the fourth quarter of 2018. The outperformance versus government bonds is massive. That is because the spreads have been coming down. From around 540bps at the start of the year, US high-yield spreads have fallen close to 370bps today. In Europe, the iTraxx X-Over 10-year index which follows the CDS for sub-investment grade corporates, has seen its spread fall from 430bps to around 300bps today. By the way, that level is very close once again to the five-year lows seen before.

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Responsible investment moved further into the mainstream in 2018

13 March 2019

Can investments make a good return and do good at the same time?

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ARE INVESTORS TOO OPTIMISTIC?

12 March 2019

The strong rebound in global equity markets continued unabated in February, with the MSCI World index gaining over 11% in euro terms over the first two months of 2019.

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The mother of all election budgets

05 March 2019

China has been stimulating its economy through monetary and fiscal measures for over a year and strong loan growth in January suggests that the measures are starting to have an effect, despite Chinese statistics around the Chinese New Year being even more doubtful than in the remainder of the year. Chinese equity markets responded enthusiastically to recent progress on the US-China trade talks and are some of the bestperforming equity markets in 2019, with some indices rising close to 30%.

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From Carnegie to Gates: directing wealth toward the public good

25 February 2019

US steel magnate and pioneering philanthropist Andrew Carnegie believed that the super-rich were merely caretakers and administrators of their great wealth, rather than its owners. Once the richest man in the world, he gave away 90% of his fortune to fund scientific research, build schools and support public libraries.

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