Global finance experts Steven Major and James Lord delve into bond market outlooks and currency dynamics, while geopolitical strategist Tina Fordham discusses potential ceasefires and investor concerns. The podcast covers a wide range of topics from bond yields and fixed income strategies to political conflicts and economic impacts.
Consider duration in fixed-income investments for potential gains as yields decrease.
Interventions to stabilize the yen could impact market stability and raise questions about their effectiveness.
Deep dives
Yield Trends and Fixed Income Investments
The discussion delves into the trends in yields, highlighting the fluctuation in yields over the past few years. The guest, Stephen Major from HSBC, suggests a potential downward trend in yields due to unexpected factors like population increases and fiscal changes. He emphasizes the asymmetry in risk, indicating potential gains in fixed income investments as yields decrease.
Duration and Investment Strategies
Stephen Major recommends considering duration in investment strategies, particularly favoring going into the 'belly' of the yield curve. He discusses how the choice of duration could impact returns and mentions the importance of balancing risks over time. The conversation also touches on the dynamics of yields and the potential benefits of longer-term investments.
Foreign Exchange Intervention and Impacts on Yen
The segment explores the potential intervention by the Ministry of Finance in Japan to stabilize the yen. The guest, James Lord from Morgan Stanley, sheds light on the impact of such interventions and the considerations behind them. The conversation delves into the costs and effectiveness of currency interventions and the implications for market stability.
Watch Tom and Paul LIVE every day on YouTube: http://bit.ly/3vTiACF. Bloomberg Surveillance hosted by Tom Keene and Paul SweeneyApril 29th, 2024 Featuring:
Steven Major, Global Head of Fixed Income Research at HSBC, on this morning's bond note and outlook for the bond market
James Lord, Global Head of FX and EM Strategy with Morgan Stanley, on king dollar and the latest yen moves
Tina Fordham, Founder & Geopolitical Strategist at Fordham Global Foresight, on brokering a potential ceasefire between Israel and Hamas, an invasion of Rafah, and other geopolitical pressures that investors are following
Bloomberg's Lisa Mateo with her Newspaper Headlines