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With Shayne Dunlap, Co-Portfolio Manager

Humans have an innate ability to hope – to believe things will be better in the future than they are currently. This has been an important factor in our species surviving and ultimately thriving as the dominant one on this planet. It also has the side effect of manifesting itself in the financial markets. 

With the Pacific G10 Macro Rates Team 

Global Macro Overview
Volatility continued to decline last week. The key themes remained unchanged: risk assets rebounded as economies started to re-open with the S&P 500 up 3.5% on the week, WTI up 12.5% to above $33, Credit spreads were tighter across the board and 10y Government Bond yields remained mostly unchanged.  

Pacific Asset Management G10 Macro Rates team, Shayne Dunlap, Richard Marshall & Oleg Gustap recently talked to Investment Week's Michael Sheen on how PAM's entrepreneurial mindset has helped them outperform through recent market turmoil. 

With the Pacific G10 Macro Rates Team 

Global Macro Overview
Another quiet week passed in financial markets. Risk assets underperformed as government bonds strengthened across the globe, but volatility remained subdued. Financial markets re-priced the probability of an introduction to negative rates in currencies where short term rates have reached 0%. Heads of Central Banks have been resisting the idea so far, leaning towards more ‘conventional’ measures like forward guidance, QE and Yield Curve Control.  

With the Pacific G10 Macro Rates Team 

Global Macro Overview
Last week continued the fashion of decreasing volatility, higher equities and unchanged interest rates. The rally in equities continued to be skewed towards technology companies, with the broad NASDAQ index trading positive YTD. As was expected, the number of job losses in Canada and the US reached all time extremes. With numbers fully priced, there was little reaction by financial markets.  

With the Pacific G10 Macro Rates Team 

Global Macro Overview
Volatility continued declining across markets last week. Both Equity and Treasury markets in the US ended the week unchanged with tighter credit and FRA/OIS spreads. While yields on German Bunds and UK Gilts were lower on the week, supported by Central Bank purchases. Interest rates and FX volatility measures continued declining while VIX remained broadly unchanged as daily volatility of S&P 500 returns remains high.