Latest News,
Views & Blog

With the Pacific G10 Macro Rates Team

Global Macro Overview
Interest rate markets were trading with caution over the last week trying to navigate through the coronavirus headlines, politics and macroeconomic data. Yield on the 10-year US Treasuries was stuck in a narrow (less than 10bps) corridor the whole week. At the same time, equities continued grinding higher despite the uncertainty and unquestionably lower (short- to medium-term) global growth prospects that is starting to show in the data. 

With the Pacific G10 Macro Rates Team

Global Macro Overview
Coronavirus related headlines continued to dominate financial markets last week. Once again G10 interest rates paid little attention to strong fundamental data with government bonds selling off in the first half of the week and then rallying back into the weekend. 

With the Pacific G10 Macro Rates Team

Global Macro Overview
Despite many countries releasing Q4 GDP and inflation data, along with two major central bank meetings (The Fed and the Bank of England), last week’s fundamental information was largely ignored, with the focus firmly on the outbreak of the Coronavirus and its potential impact on global growth.  

CIO Update with Will Bartleet, CIO and multi-asset portfolio manager at Pacific Asset Management

Overview
The outbreak of a new coronavirus in central China has led to an increase in market volatility. The source of the outbreak is thought to have been a seafood market in Wuhan, a city of 11 million in central China and has so far infected around 6,000 people and caused over 130 deaths worldwide. The virus has spread to 15 countries although at this stage less than 100 cases have been detected outside China. 

Will Bartleet, CIO and Lead Portfolio Manager of the Pacific Multi-Asset Solutions and Matthew Lamb, CEO of Pacific Asset Management look back at the winners and losers of the last ten years and contemplate what might be in store for the next decade. 
 

With the Pacific G10 Macro Rates Team

Global Macro Overview
Last week financial markets experienced their first episode of panic since the end of Q3 2019. Apart from a few outsized surprises, fundamentals were not driving market pricing. Instead, the outbreak of the Coronavirus from China generated negative headlines that resulted in a risk-off dynamic. It was the worst week for the S&P since November 2019, as oil was down almost 10% on a week and global government bonds rallied towards 3-months lows.  

With the Pacific G10 Macro Rates Team

Global Macro Overview
Last week was very quiet within G10 markets after the unexpected volatility experienced over the first week of 2020, driven by the uncertainty in the Middle East. The S&P 500 finished the week at new highs, rates and currencies were mostly range-bound, as a result volatility continued to slide lower. US and China signed the Phase 1 deal, without any surprises. Data continued to point at stabilisation and recovery in Asia-Pacific economies, which should be beneficial for the countries whose economies are reliant on trade (Europe and Japan). 

Latest G10 Macro Rates Blog
With Shayne Dunlap, Co-Portfolio Manager

Trump started the new year and decade unleashing an armed drone from somewhere above Baghdad airport. Is this a forbear to a new period of uncertainty and a return of higher volatility?   

Emerging Markets – 2019 Review
From the North of South Capital team

Global Emerging Market equities finished the year on a strong note in December, with the fund returning 20.7% for 2019 – ahead of the MSCI Emerging Markets index by 2.3%. This marks the fourth consecutive year of outperformance and the sixth out of eight calendar years that North of South has been managing this long only strategy with a focus on Value. 

With the Pacific G10 Macro Rates Team

Global Macro Overview
Last week marked the first week of normal business and liquidity in the bond and interest rate markets, as demostrated by over $1 trillion of bond issuance.