Risks are rising: the Fed must thread a narrowing needle-eye to stop inflation without causing a recession.
Big data is fueling, informing and empowering businesses globally.
These are the six major themes influencing positioning across our fixed income portfolios for the second half of 2022.
Russia’s energy tentacles, intertwined throughout Europe’s power network, may prove difficult to excise.
In the wake of Russia’s invasion, social factors such as energy supply security, consumer protection and responsible sourcing demonstrate the importance of an inclusionary ESG approach.
Should the Russia-Ukraine conflict persist, it would lead to further tightening of financial conditions but is unlikely to deter the Federal Reserve from a 25 basis point interest rate hike in March. Tighter conditions will slow economic growth at the margins and constrain financial markets over the short term, but not over the longer term.
While it might seem better to focus on current so-called ESG leaders, we believe there is untapped value in the underappreciated ESG improvers.
Special Update: Comments on Exposure to Russia and Ukraine in Voya Multi-Sector Fixed Income Strategies
The devastating events that continue to unfold in the conflict between Ukraine and Russia have led to steep price declines in both countries’ financial markets.
- Economic recovery likely undeterred: Rising energy prices add risk to Europe’s recovery but are unlikely to derail the global economic recovery.
- Expect further equity volatility: We see the strongest impacts in commodities, energy and financials, but focus should shift quickly to interest rates and supply-chain resolution.
- Seeing value amid spread widening: We believe the impact of Russia’s actions on fixed income markets has largely played out, and any further widening in credit spreads could present opportunities.