Europe

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

Is an Index Impassive?

by Dianne Lob

Passive investments continue to gain popularity, generate record flows and grab headlines. We understand the appeal. But investors must also consider some of the risks of tethering their fortunes to a benchmark.

Equities

Active Equities Don’t Have to Be Riskier

by Kent Hargis, Chris Marx

Many investors are throwing in the towel on active equity management in the name of evading risk. But being active doesn’t always mean accepting higher risk. Consider, for instance, the benefits of even-tempered stocks.

Equities

Looking for the Ideal Mix with Emerging-Market Local-Currency Bonds?

by Marco Santamaria

For investors who want an emerging-market (EM) debt allocation that includes EM local-currency government bonds, it may make sense to use developed-market (DM) government bonds to diversify EM currency volatility.

Emerging Markets, Fixed Income

UK Election Result Fuels Vote for Smaller Stocks

by Alan Connery, Liliana Castillo Dearth

Britain’s Conservative party’s election win has buoyed smaller companies. The vote of confidence offers an opportunity to take a closer look at UK small- and mid-cap (SMID) stocks, which are highly profitable versus European peers.

Equities

Stocks Look Expensive…and Still Attractive

Developed-market equity valuations seem a bit expensive today—but we still think they’re worth an overweight in multi-asset strategies. A wider view shows that stocks remain attractive globally.

Multi-Asset

In Russia, Caution Still Required

Ordinarily one of Europe’s most vibrant cities, Moscow on a recent visit looked like a town in a defensive crouch. And while Russian economic conditions have stabilized somewhat, we think they will remain difficult for some time.

Emerging Markets, Fixed Income

GSE Reform? It’s Already Happening

by Michael S. Canter, Matthew D. Bass

Official reform of the government’s role in housing finance isn’t likely this year. But de facto reform, led by the private sector, is already under way. That’s good for investors, borrowers and the housing market.

Fixed Income

China Emerges as a Global Innovator

China is known as the world’s manufacturing powerhouse. But today, innovation is flourishing in the world’s most populous nation, which is rapidly becoming a trendsetter with the potential to disrupt business models globally.

Emerging Markets, Equities

China Emerges as a Global Innovator

China is known as the world’s manufacturing powerhouse. But today, innovation is flourishing in the world’s most populous nation, which is rapidly becoming a trendsetter with the potential to disrupt business models globally.

Emerging Markets, Equities

Emerging-Market Opportunities: Look Under the Surface

Emerging markets seem to offer value for investors to tap into based on stock and bond valuations. But allocating more isn’t necessarily the answer. We think the value lies under the surface.

Multi-Asset

Finding Growth Amid Emerging-Market Slowdowns

by Laurent Saltiel, Sergey Davalchenko

Emerging markets have faced a significant economic slowdown in recent years. But there are still many industries and companies that are continuing to grow—and offer attractive return potential.

Emerging Markets, Equities