• EM Bond Investors Demand Pound of Flesh

    Heda Bayron    Abhishek Kumar, State Street Global Advisors
    17 Nov 2017

    Do emerging market (EM) bonds still offer value for the risks investors take? Investors looking at the recent 100-year Argentina bond could be forgiven for thinking EM hard currency spreads had compressed to worryingly low levels. In our view, however, this type of issue is an outlier. In fact, there are plenty of securities across the EM universe offering attractive yields, especially when compared to those in developed markets (DM).
  • Green Bonds: A Decade of Progress

    Heda Bayron    Ross Bolton, State Street Global Advisors
    17 Nov 2017

    In 2007, the European Investment Bank issued one of the world’s first “green” bonds. A key innovation was that the proceeds were entirely dedicated to taking action on climate change. To celebrate 10 years of green bonds, we take a look at the past and future of climate-friendly investing. In this brief primer, we’ll review key market concepts, identify drivers of growth for green bonds and highlight important considerations for investors.

    Prior to 2013, green bonds were somewhat of a niche market. Since 2013 the green bond market has experienced a significant increase in issuance each year, as well as increased interest from institutional investors. According to the industry group Climate Bonds Initiative, green bond issuance has grown from $3 billion in 2012 to a record $81 billion in 2016. In 2017, Climate Bonds Initiative expects $150 billion of new issuance.
  • How Far Will China Go? Charting the Future of RMB Internationalisation  

    Heda Bayron    Elliot Hentov, State Street Global Advisors
    16 Nov 2017

    China’s capital account opening and RMB internationalisation has paused. Sceptics argue that the process has peaked due to risk of capital outflows as well as the Chinese government’s reluctance to cede more control to market forces. However, this underestimates hidden costs and structural forces at play that make the status quo unsustainable. We believe that further opening is therefore likely to proceed sooner, rather than later.
  • Investment Roundtable: Change the Lens, Change the Goal, Change the Game

    Heda Bayron    State Street Global Advisors
    21 Sep 2017

    New technology, big data and factor-based approaches are disrupting conventional approaches to portfolio management. However, we believe even more far-reaching changes are occurring as institutional investors redefine their objectives beyond traditional portfolio metrics and look at the broader impact of their investment choices. In this latest investment roundtable, we speak to industry stakeholders about what this shift in perspectives on performance and value will mean for asset owners and asset managers alike as well as for the future of the profession.
  • Demographic Disruption: Why We Need to Save More and Invest Differently

    Heda Bayron    Amlan Roy, State Street Global Advisors
    21 Sep 2017

    Unprecedented demographic changes are under way across the world, and their speed and magnitude are greater than ever before. Like the technology disruptions overturning conventional wisdom about industries and business models, demographic disruptions will force countries to
    rethink foundational policies around retirement, labor force participation, healthcare and much more. Investors will need to rethink savings and spending objectives over much longer time horizons. We believe the impacts of these demographic shifts have not been adequately assessed
    and accounted for.

  • Japanese Inflation Fails To Take Flight

    Heda Bayron    Peter Morgan, State Street Global Advisors
    24 Aug 2017

    Despite extraordinary efforts by the Bank of Japan (BOJ), its official inflation target remains elusive, leading to the central bank’s decision to abandon a specific time frame for reaching its target.
  • China Bond Connect: A Game Changer for Investors

    Heda Bayron    David P. Furey, Bruce Zhang
    09 Aug 2017

    The newly-launched Bond Connect link between Hong Kong and mainland China is a game-changer, in our view, for global investors seeking access to high quality sovereign debt with attractive yields, such as that which China’s Interbank Bond Market (CIBM) can provide. The development may also accelerate the inclusion of China in major bond indices, which would have important implications for bond investors globally.
  • The Inflation Conundrum

    Heda Bayron    Lori Heinel, CFA, Simona Mocuta
    04 Aug 2017

    Why have tighter labor markets in the US and elsewhere not led to higher inflation? Some say it’s weak demand - Senior Economist Simona Mocuta has another idea.