Asia-Pacific

How the Populist Wave Could Reshape Policy

by Darren Williams, Guy Bruten, Fernando J. Losada

Populism is here—and it isn’t going away. The ideology can come from either side of the political spectrum, and it can have a big impact on policy, the macroeconomic landscape and—ultimately—how we invest today.

Economics

Why Bond Investors Should Mix Rates and Credit

Fixed-income assets come in two varieties: risk-reducing and return-seeking. Most of the time, they add value at different times and in different market environments. By pairing them in a single portfolio, an investor can minimize drawdowns and procure a relatively high level of income.

Fixed Income

Looking for Income in All the Right Places

by Morgan Harting, Martin Atkin

Investors and advisors know they can’t depend solely on the old standbys—bonds, high-dividend stocks and cash—to produce income today, and they’re ready to try a new approach. But which one?

Alternatives, Multi-Asset

The Perils of Low Liquidity and High Leverage

Diversify. It’s a cardinal rule of sound investing. But what are investors to do when a well-diversified portfolio won’t protect them? It’s time to start thinking about an answer.

Alternatives, Fixed Income

Getting More from Low Market Volatility

by Alex Barenboym

Stocks still seem attractive, but it’s important to guard against a potential spike in market volatility. Today’s low-volatility environment happens to be a good time to shop for downside protection.

Multi-Asset

It Pays to Be Choosy in Emerging Markets

by Morgan Harting

Emerging equities remain rich in return opportunity, in our view. But as their recent whiplash behavior illustrates, capitalizing on this potential will require far greater selectivity than it did in the past.

Emerging Markets, Equities

Is the Air Getting Thin for Japanese Stocks?

by Katsuaki Ogata, Masahide Ooka

The rapid surge of Japanese equities in recent years has left many investors worried that they may have missed the bus. We believe big changes underway can support further profitability improvements and push the market higher.

Equities

China Reforms Create a New Muni Market

Are you an optimist or a pessimist? These days, news about China seems to be mainly good or mainly bad. The market and media response to China’s local-government debt swap programme shows why maintaining a balanced view is essential.

Emerging Markets, Fixed Income

Emerging-Market Stocks for Flywheel Fashionistas

by Sammy Suzuki

The passion for gym-to-street fashion has gone global, and shows no sign of losing vitality. It’s also keeping business humming for a network of yarn spinners, fabric mills and sneaker makers across emerging Asia.

Emerging Markets, Equities

Stocks Still Have Some Room to Grow

Stocks have been on a pretty strong run in recent years, and some investors are nervous that the market could run out of steam. We think there’s still more upside potential.

Multi-Asset

Valuing Stocks Requires a Human Touch

by Kevin Simms, Joseph G. Paul

Following pure valuation metrics today could leave equity portfolios with severe imbalances—especially in financials. But by studying patterns of the past, investors can gain insight into investing in underappreciated stocks by applying a human touch.

Equities

Actively Manage Your Activist Credit Risk

by Jeff Skoglund

Bondholders fret about leveraged buyouts (LBOs) late in the credit cycle. But this time around, with new federal lending rules slowing LBO activity, shareholder activism is stealing the spotlight—and the cash flows. The threat to bond portfolios is just as serious.

Fixed Income

China Bonds Still Offer Opportunities

As more corporate bond issuers in China run into financial trouble, investor anxiety about the possibility of a broader market collapse has understandably increased. We don’t think it’s time to man the lifeboats, however; on the contrary, we believe that Chinese bonds still offer good opportunities for research-driven investors.

Emerging Markets, Fixed Income