Formulated for resilience

Beijing’s ideological battle to stamp out COVID-19 appears increasingly misguided as the rest of the world learns to live with the virus. But the impact of China’s approach will be felt far beyond its borders.

In this month’s instalment of our visual series on topical themes, we look at whether the global economy is heading towards stagflation.

In the first of a new series, David Clott assesses the key recent developments in the convertible bond market and outlines why this could be an attractive entry point into the asset class with Rico Pedrett.

The co-managers of the Aviva Investors Strategic Bond strategy give their views on the outlook for credit markets following the worst first-half in at least 40 years.

The idea that human actions are bringing natural systems close to breakdown, threatening livelihoods and financial stability, is making asset managers think harder about nature risk and the environmental dependencies in investee companies.

Russia’s war in Ukraine has contributed to soaring food prices, supercharging global inflation. Poorer countries will likely be hardest hit, adding to the risk of social unrest. With public finances and incomes already under strain, emerging-market debt investors should be on high alert.

The co-heads of our global high yield team explain how the asset class is standing up to current headwinds.

Aaron Grehan and Nafez Zouk from our emerging market debt team explain how the asset class is standing up to some significant headwinds.

The economic fallout from the pandemic has left several poorer nations struggling to repay debt. China, the biggest single creditor to many, could carry considerable clout in negotiations. Zambia will prove an early test case, argues Carmen Altenkirch.

In this month’s instalment of our visual series on topical themes, we look at key trends in the credit market.

More than one fifth of the world’s largest listed companies have committed to net-zero targets, but few have detailed roadmaps to get there. Mirza Baig considers the challenges for investors managing transition pathways.

We are back in an old, but unfamiliar market regime. In a period where simple playbooks may falter, Jeremy Albers sets out why portfolio construction can make the difference.

We assess the near and longer-term implications of Russia’s invasion of Ukraine on emerging-market debt.

Bondholders are starting to use their power to influence corporate behaviour in areas such as climate change, social inequality and biodiversity loss.

Emerging market assets have underperformed developed market peers over the past decade. While this has led to valuation gaps, selectivity will be critical, argues David Nowakowski.

Investor influence has long been confined to that of equity shareholders. Yet bondholders wield a lot of power. Can they harness it for positive change?