FICC Focus

Iain Stealey, International CIO of Global Fixed Income at JPMorgan Asset Management, shares his insights on the strength of credit markets amidst global challenges. He discusses how credit outperformed equities during crises in France and the UK, emphasizing its resilience against economic fluctuations. The conversation delves into the impact of US Fed policies, inflation concerns, and Europe's fiscal pressures. Stealey also highlights investment strategies in fixed income sectors, providing a hopeful outlook for corporate credit amidst turbulence.

Eric Kazatsky, Managing Director at Mackay Shields and former Head of Municipal Strategy at Bloomberg Intelligence, dives into the municipal bond market's slow recovery. He discusses the potential resurgence of institutional investors as tax clarity improves. The conversation explores innovative shifts toward private placements in sectors like education and healthcare. Kazatsky also shares insights on curve positioning amid interest rate changes, blending market analysis with personal anecdotes about Disney and comic book fandoms for a light-hearted touch.

Dominic Konstam, Head of Macro Strategy at Mizuho Securities and a veteran in economics and rate strategy, joins Ira Jersey to delve into the complexities of the yield curve. They explore how term premium influences risk assets and discuss Mizuho’s optimistic macroeconomic outlook. Konstam also shares insights on how the Trump administration's policies may continue to affect the dollar and overall economic strategies. Get ready for an engaging discussion that unveils the intricate connections within the financial landscape!

Win Thin, Chief Economist at Bank of Nassau 1982 Limited, shares his insights on the dollar's cyclical downturn. He and fellow expert Audrey Childe-Freeman discuss how weak labor market data could lead to further Federal Reserve rate-cut discussions. They analyze the implications of fiscal policies and tariffs on currency dynamics, highlighting the bearish outlook for the dollar against the euro. The duo also emphasizes the merits of defensive currencies like the Swiss franc as global economic uncertainties loom.

Jim Dunbar, Partner and Head of Real Estate Lending at Varde Partners, shares insights into the evolving world of property lending. He discusses how navigating the affordability crisis reveals both challenges and opportunities in the commercial real estate sector. Dunbar emphasizes the importance of flexible capital and strategic advantages, like owning a mortgage servicing company. He also explores the divergent trends between the Sunbelt and gateway markets, shedding light on unique investment strategies in non-traditional real estate sectors.

George Ferguson is a senior aerospace/defense & airline analyst at Bloomberg Intelligence, and he joins the discussion on global defense spending shifts. They explore the implications of President Trump's defense burden-sharing strategies, particularly in light of Ukraine. Ferguson details how technological advancements in warfare transform military approaches and contract dynamics. He also highlights key players like Lockheed Martin who stand to gain from these defense expenditures while discussing the logistical challenges of modern air defense systems.

Matthew Moniot, a credit risk specialist at Man Group; James Plunkett, overseeing capital distribution at Natwest; and Lento Tang, a European bank analyst at Bloomberg Intelligence, dive into the intricacies of Significant Risk Transfers (SRTs). They discuss the critical role SRTs play in banking risk management and the shifting dynamics in Europe versus the U.S. Additionally, they unpack the challenges posed by capital regulations and the evolving landscape of investment opportunities, emphasizing the importance for credit investors.

Dan Hanson, Chief UK Economist at Bloomberg Economics, shares insights on the contrasting perceptions of the UK's economic outlook. He discusses the surprising growth amidst negative narratives, highlighting real wage increases and government spending impacts. The conversation turns to the challenges of productivity and investment, urging for increased public support. Finally, Hanson delves into the current state of the gilt market and the fiscal hurdles as the autumn budget approaches, providing a nuanced view of the UK's economic landscape.

Matt Bloomfield, Partner at Palmer Square and President of Palmer Square Capital BDC, shares insights on managing CLOs amidst the current credit landscape. He discusses the challenges of tight loan spreads and the need for strategic risk management. Bloomfield elaborates on the evolution of private credit, emphasizing the relationship with private equity, and highlights the importance of credit selection and diversification in navigating market complexities. He conveys optimism about growth in structured credit while advocating for adaptability in investment strategies.

Hemant Baijal, Head of Macro Alpha Strategies at Invesco, shares his insights on the dynamics of global rates and FX risks. He highlights how the future of the dollar is influenced by unhedged dollar assets and explores economic factors affecting investment strategies. The discussion delves into the impact of U.S. economic trends on global bond markets and examines currency flows amidst evolving credit landscapes. Baijal also addresses risk assessment for international and emerging markets, emphasizing the significance of strategic asset allocation.