Leveraged loans have bounced back from a difficult end to 2018, but numerous risks remain. Investors who haven’t already reconsidered their positioning have a rare second opportunity to do so.
We expect that the US dollar’s strength should fade in 2019 as the pace of US rate hikes begins to slow, which will ease the pressure on Asian bonds next year.
Valuations have become more attractive and fundamentals are reasonably positive. But a period of transition looms, with central bank support being withdrawn and government bonds now offering a more compelling alternative than they have in many years.
The Japanese central bank held fire on monetary policy changes at its October meeting as it downgraded the inflation outlook yet again
There remains much uncertainty as negotiations between the UK and EU enter a crucial stage. Sue Noffke, UK equities fund manager, provides some clarity for investors.
Spain’s Prime Minister Rajoy is ousted in a vote of no confidence, while populists take power in Italy.