The COVID-19 crisis has impacted asset valuations, increased volatility and led to reduced liquidity in many cases. Most asset classes have been affected, and governments have stepped in to support financial operations. In this paper, we examine the effects of the crisis on the year-to-date liquidity of USD corporate bonds, as measured by the price liquidity ratio.
Credit markets extended the April rally in May, with spreads narrowing further versus government bonds, driven by renewed risk appetite, and central bank QE programs. But there is a notable divergence in the performance of Canadian investment grade and high yield spreads in 2020...
Philip Lawlor, MD Global Markets Research, draws upon key observations from the recently published 'Market Maps' Monthly Performance Report to discuss different perspectives of the Covid-19 impact, why US equities have outperformed in the risk rally, R1000 and R2000 performance, REIT and Environmental Opportunity index performance, factor rotation and correlation analysis.
This week, Philip Lawlor, MD Global Markets Research, reviews key data points from the Market Maps Equity Market Drivers report to provide insight into the impact of debt financing on recovery, what’s happening to the EPS cycle, diminishing prospects for dividends and buybacks, and elevated valuations.
Philip Lawlor, MD, Global Markets Research examines the recovery in risk appetite, why US equities dominated global equity market returns, notable differences in sector weighted performance contributions across the regions, performance of alternative indices and more.
In a year with few bright spots for global equity markets amid the Global Pandemic, China has provided some relative upside – or less downside – for investors according to the FTSE Global RIC Capped Indexes.
Some commentators have expressed concern about a wave of Emerging Market (EM) debt defaults, based on the scale of the Covid-19 shock, declines in commodity prices, the expansion in EM debt since the GFC, the strong US dollar and inadequate public health systems.
Philip Lawlor, MD, Global Markets Research looks at the impact of lower trend growth, the role of the central banks and whether the Fed could end up buying equities and whether supply shortages will produce an inflation problem
The sheer scale of the economic contraction caused by the coronavirus shock and Great Lockdown is emerging, although much still depends on the length of the Lockdowns, unemployment levels, business survival rates and how far consumer behavior adjusts.
Given the recent dislocation of global supply chains, some commentators have raised the prospect that inflation will return as aggregate demand recovers, because of a negative supply-side shock from the coronavirus, and its impact on capacity.
Investors have put a premium on safety in recent months amid a global market meltdown caused by panic related to the Global Pandemic, among other factors, according to global index provider FTSE Russell.
Covid-19 market impact assessment - a case of ‘the Good, the Bad and the Ugly’. This week’s briefing focuses on a review of global equity performance drawing upon findings from our Equity Markets Driver report published today, with Philip Lawlor, MD, Global Markets Research, FTSE Russell
12 years apart but similarities exist. In our quarterly performance update on factors, Philip Lawlor, MD, global markets research and Marlies van Boven, MD, research & analytics compare the impact of the Covid-19 and 2008 GFC corrections on factor behaviour.
In this very volatile market environment, dividend-paying companies may further benefit investors seeking quality and stability. However, when seeking the most consistent dividend growers, a disciplined index-based screening process is an essential part of the equation, according to insights from global index provider FTSE Russell and ProShares ETFs.
This week Philip Lawlor, managing director, global markets research, assesses the impact of COVID-19, drawing upon some of the key observations from our latest Market Maps 'Fixed Income Insight' report and examining the status of the EPS and valuation cycle for equities.
Examining industry-weighted contributions to the total return regionally since the market peaked in February 19 highlights that financials have been the largest negative contributors across most regions.
Amid widespread losses, factor performances are exhibiting a strong preference for safety, catapulting Quality and Low Volatility into the lead over riskier Value and Size, writes Philip Lawlor, head of Global Markets Research.
G7 sovereign bond yields fell sharply in Q1, to all-time lows, as fixed income markets moved much faster than equity markets to discount a major economic shock, and possible recession, from the coronavirus contagion.
Philip Lawlor, managing director, global markets research, discussed the impact of the coronavirus on market returns and gauged its effect on the global economy, the credit cycle and market drivers, such as profits, valuations and factors.