Climate Policy Initiative’s Post

Finding 7 from the state of #adaptation report (#humanitarian and #climate) stands out to me as a key area for reflection and in need of improved coherence. Especially following hurricane #beryl We need to keep working together to reinforce progress across streams of #finance and #development investment.

Peak Inflation - Are we there yet? The resurgence of inflation and the recent interest rate hikes have substantial implications for the private equity and funds industry, as well as international financial centers (IFCs) worldwide. As inflationary pressures continue to mount, investment decisions become more complex, and portfolio managers must adapt their strategies to navigate this uncertain economic environment. So what should Private Capital be doing? Follow the link for our take….. #mourant https://lnkd.in/efWJzGj3

📊 Excess Volatility ahead 📈 Are we expecting an Interest Rate Hike? after the Elections These factors influence bond yields, sector performance, and your investment strategy. Key Insights: Stress Analysis given the current economic scenarios. How to benefit in the Short-term from government spending on deffence sector and in the long-term sectors in high demand. Explore some actionable investment ideas Check out the full article for detailed insights and actionable steps. Disclaimer: Please consult with your financial advisor for personalized advice. #Portfolio #investment #PrivateWealth #WealthManagement

In the world of bond markets, volatility is inevitable. It is often shaped by factors like Federal Reserve policies, fluctuating interest rates, and political events such as US elections 🗳️🌪️. These elements highlight the complexity of investing in bonds, showing that traditional strategies might not always be effective. There are several ways investors can address the risks associated with volatile markets. One approach starts with defining the investment universe, prioritizing investments in, for example, Senior Secured Bonds from OECD countries🔒. Additionally, conducting a thorough credit risk evaluation and understanding the issuer's financial health within the broader economic and geopolitical landscape is another important cornerstone to effective capital allocation 🔍. Finally, gaining a better understanding of how external factors, such as changes in interest rates and shifts in the political landscape, can drastically affect bond market performance is crucial 🌐. While these changes are difficult to anticipate, staying informed and adaptable is key to reducing investment risk 📚. Find out more on how to approach volatile markets in our most recent article 🔗: https://lnkd.in/eD4c73mj #BondMarket #InvestmentStrategies #MarketVolatility #CreditRisk #Investing #NoInvestmentAdvice

The government yields for 3-year and 5-year bonds have breached the 18% mark, this is indicative of increased investor risk sentiments and a high demand for short-term securities, such an opportunity for those holding cash. However, the overall impact of high rates is a cause for concern for the economy. Increased number of investors for the short investment horizons (3 years and below) can result in a significant cash build-up which may offer immediate rewards, and thus creating potential reinvestment risks when market dynamics shift!

Explore the historical transmission from tighter monetary policy to corporate bond spreads and the respective investment implications under PGIM Fixed Income's “weakflation” scenario in #TheBondBlog.

Explore the historical transmission from tighter monetary policy to corporate bond spreads and the respective investment implications under our “weakflation” scenario in #TheBondBlog.

Explore the historical transmission from tighter monetary policy to corporate bond spreads and the respective investment implications under PGIM Fixed Income's “weakflation” scenario in #TheBondBlog.

In this new paper with Davide Furceri, Pragyan Deb, Siddharth Kothari and Julia Estefania Flores, we identify monetary policy shocks for 33 countries and examine the transmission into output and prices. We find that the effects of shocks on real GDP is instant but the response of prices is slower, peaking around the sixth quarter. There are also significant heterogeneities in the transmission of monetary policy across countries and time, depending on structural country characteristics and cyclical conditions. Monetary policy is more effective in countries with flexible exchange rate regime, more developed financial systems, and credible monetary policy frameworks; and the transmission is stronger when uncertainty is low, financial conditions are tight and monetary policy is coordinated with fiscal policy. Here is our paper for more details: https://lnkd.in/eguGgqvW

Watch #FitchRatings webinar on the #UK #Sovereign rating review. Find out about the main rating drivers, including reasons for the rating decision, and macroeconomic and fiscal policy developments. OnDemand: https://lnkd.in/eZE2BrCF