Rising rates on the menu

The first quarter of 2017 was a very strong quarter for credit investors. All our credit products performed well and so did Emerging Market Debt. With the exception of market weakness in March, which again turned out to be a dip to buy, markets were strong. Our global strategies were flat to slightly ahead of their benchmarks and our emerging market strategies lagged their benchmarks.

Global trade, Trump’s policies and interest rates have been the main macro headlines driving our markets in Q1 2017. The Dutch election and French election expectations have eased markets fear of a collapse of the European Union. After years of falling rates and negative rates, we are now in an environment where the talk is of the timing and steepness of rising rates. Even in Europe, we have had hints of a potential rate increase before ECB quantitative easing (QE) rolls off.

Read the full Quarterly report on Value Bond here