The Weekly Fix

In today’s episode of The Weekly Fix, Tim Leary, Senior Portfolio Manager, BlueBay US Fixed Income, discusses the impact of geopolitical risk, the likelihood of additional rate hikes, the macro backdrop for the 3Q earnings season and what it all means for the market. 

In this episode of The Weekly Fix, Andrzej Skiba, Head of BlueBay US Fixed

Income, discusses the potential impact of the FOMC meeting on fixed income

assets, emphasizing the attractive carry return, and suggesting that investors

with a medium-term horizon should capitalize on the opportunity. Skiba also expresses

skepticism about the Fed's optimistic scenario.

On today’s episode of The Weekly Fix, Stephen Fitzsimmons, BlueBay Institutional Portfolio Manager at RBC GAM, discusses the elevated economic data and new issue flows, and the market reactions to these dynamics. He notes the recent CPI data showed inflation remaining stubborn with not much of a reaction from the market to the news as it looks to this week’s FOMC meeting for direction on rates. Meanwhile, we’ve experienced a significant supply of new issuance of investment grade and high yield bonds.

While recently visiting with clients and prospects in Chicago, Tim Leary, BlueBay Senior Portfolio Manager, was able to get a strong sense of how investors are feeling about the current state of the market, and he shares those insights in today’s episode of The Weekly Fix. 

Tim Leary, BlueBay Senior Portfolio Manager, provides a summary of recent economic events. At the Jackson Hole Economic Symposium, Fed Chairman Powell made it clear the decision on future rate changes will be data-dependent. The focus remains on containing inflation towards the long-term goal of 2%. In the meantime, political rhetoric surrounding monetary and fiscal policies is heating up, while tighter monetary conditions are conflicting with US fiscal spending. And credit markets continue to offer attractive yields, reflecting the health of corporate balance sheets. 

 In today’s episode of The Weekly Fix, Andrzej Skiba, Head of BlueBay US Fixed Income at RBC GAM, discusses the upcoming economic symposium in Jackson Hole. Policymakers will be discussing a range of issues, but no major policy changes are expected to be announced. Yields continue to rise as investors react to positive economic data, but Skiba believes that growth data will moderate, and inflation will head in the right direction. Despite the current sell-off in rates, Skiba maintains that fixed income remains attractive in the medium term.

In the latest episode of The Weekly Fix, Andrzej Skiba, Head of BlueBay US Fixed Income at RBC GAM, discusses the current market trends. While inflation has moderated, economic growth remains strong, and we aren’t yet approaching the Fed’s 2% inflation target. But there is a lag to policy shifts and tighter lending standards, so we wait for more data to steer market direction. Meanwhile, we continue to focus on name selection to drive our decision making. 

In today’s episode of The Weekly Fix, Ajeet Atwal, Portfolio Manager, BlueBay US Fixed Income at RBC GAM, discusses the impact of improved market sentiment on the collateralized loan obligation (CLO) market. Earlier this year, a pullback by CLO buyers caused spreads to widen out, but the buyers have come back as conventional wisdom moves towards a no recession scenario. Spreads have come in, but CLOs still trade at an appealing level relative to other investment grade or high yield alternatives. 

In this episode of The Weekly Fix, Tim Leary, Senior Portfolio Manager of Leveraged Finance, BlueBay US Fixed Income, reflects on the Fed no longer forecasting a recession, and how the backdrop to support that sentiment is conducive for credit markets. 

In this episode of The Weekly Fix, Charlie Whinery, BlueBay Portfolio Manager of Leveraged Finance at RBC GAM, reflects on the previous week's earnings season and credit market activity. He notes that while earnings are still contracting, they are doing so at a slower pace than expected. Looking ahead, the focus will be on the Fed’s rate decision. However, instead of discussing that, Whinery shifts the focus to inflation at the sector level, using Healthcare and Airlines as examples.