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Why is the Fed still negative on negative interest rates?
The European Central Bank (ECB) and the Bank of Japan (BoJ) both have negative rates. So why hasn’t the Federal Reserve (the Fed) followed suit? At a time when Covid-19 has brought world economies to a halt—and top government officials even argue in favor of negative interest rates —this is the question.
Are we running out of policy ammo?
As commentators ponder what economic options are left to fight Covid-19, experts from BNY Mellon Investment Management offer their views on the future direction of fiscal and monetary stimulus.
What policy space is left to sustain economic recovery?
With the magnitude of policy loosening adopted to counter the fallout from Covid-19, many are wondering what economic policy options are left, both if further stimulus were to be required in the near future – and to advance those medium term goals that were high on the policy agenda prior to Covid-19.
Japan and Covid-19: A tale of policy firepower
Japanese policymakers have pulled out all the stops in response to the Covid-19 crisis with a combined fiscal and monetary package harking back to the early days of Abenomics. As the country continues along the path to normality, fund manager Miyuki Kashima looks ahead to life after lockdown.
Eastern promise?
Asian nations such as China are among some of the biggest polluters on the planet but are also, paradoxically, also some of the countries most committed to renewables. While Asia still has a long way to climb up the ESG ladder, the steps they are implementing could set the right pace for a brighter future, creating a range of potential new opportunities for investors.
Will the ECB get some breathing room this summer?
In June, the European Central Bank (ECB) expanded what was already a sizable asset purchasing program. As it has turned its back on further rate cuts, does it still have the policy ammunition needed to prop up one of the pandemic’s biggest economic victims?
Could the Covid-19 crisis boost sustainable investment?
Could the ongoing impacts of the Covid-19 coronavirus pandemic herald a sea change in how we manage our economy and help drive a more sustainable future? Here, Insight Investment comments on some of the latest steps towards sustainable recovery and investment potential ahead.
Investing in a post-Covid-19 world
Earlier this month, BNY Mellon Investment Management’s chief economist Shamik Dhar spoke with Newton Real Return investment leader Suzanne Hutchins to get her take on central banks’ responses to the Covid-19 crisis and how investors can best navigate towards a post-pandemic world.
Global equities: A rough road ahead?
Investors in global equities have endured a bumpy ride since the start of the year as sell-off gave way to partial recovery amid bouts of ongoing volatility. Here ,Walter Scott fund manager Roy Leckie and BNY Mellon Investment Management chief economist Shamik Dhar offer some pointers to the road ahead.
Fixed income investors weigh shifting default picture
Indiscriminate market sell-offs and bouts of volatility have hit credit investors across many fixed income sectors in 2020 but, as markets settle, just what lies ahead for bond markets? Here, Newton head of fixed income Paul Brain takes stock of the evolving credit outlook.
Can EM local currency debt markets show renewed resilience?
While emerging market local currency debt has seen some heavy outflows in 2020 amid wider market fears, history suggests the asset class may rebound strongly, according to Mellon portfolio manager Federico Garcia Zamora.
Points of view
For a two-week period in mid March 2020, funding markets experienced severe turbulence, with spillovers affecting many corners of the financial system. We provide an overview of the current situation in funding markets and discuss the main drivers behind the stress seen in March, the impact of policy interventions and vulnerabilities going forward.
After the fall…
March’s sell-off was an episode most of us will want to forget but now the dust has begun to settle on a generation-defining event in financial markets, perhaps it’s time to take stock. Here, Paul Benson (PB), Head of Fixed Income Efficient Beta, and Dragan Skoko (DS), Head of Trading and Trade Analytics, both of BNY Mellon Investment Management, offer their take on the sell-off and how it impacted fixed income.
Building the way to recovery
Infrastructure is being affected by the fall-out from global lockdowns and travel bans. But new challenges also bring opportunity, according to Mellon’s infrastructure manager, Jim Lydotes.
Can Europe deliver a green revolution to spur recovery?
Ambitious new European Commission proposals for a €750bn EU coronavirus recovery package could hold some profound environmental, social and governance (ESG) implications for European companies, governments and fixed income investors, says Newton portfolio manager Scott Freedman.
Fallen Angels: A window for forward-looking investors
Today’s economic environment has prompted credit rating agencies to downgrade a substantial amount of debt from companies. However, with the right fundamentals, some bonds may offer compelling valuation opportunities, according to Paul Benson, head of fixed income efficient beta at Mellon.
First the Fall. Now the Recovery?
After a tumultuous start to the year, investors could be forgiven for wondering which way to turn in a Covid-19 world. Here, managers from BNY Mellon Investment Management offer their roadmap for a possible route out of the crisis.
The time is now?
In the short term, markets have understandably focused on the immediate impact of efforts to contain covid-19 on economic growth. For Insight fund manager David Hooker, a more pressing question is whether recent events may sow the seeds that bring the current era of low inflation to a close.
Step by step
As major equity and fixed income markets reel from ongoing volatility and gloomy economic news, Newton portfolio manager Carl Shepherd, Insight head of fixed income Colm McDonagh and Mellon senior portfolio manager Josephine Shea consider how emerging markets are faring and what fixed income potential they might hold.
Covid-19 and generational change: why we’re all millennials now
Investors who want to understand the long-term impact of the Covid-19 could do worse than consider how different generational cohorts have responded in recent months, argues Dr Paul Redmond.
Analysis of a bear market – what’s next?
While the worst may have passed, incoming economic data will likely continue to be subdued and the path to a sharp global growth recovery, while possible, remains unclear. BNY Mellon Investment Management’s Global Economic and Investment Analysis team analyses sector and asset class returns post-25% drops in the SandP 500.