The NDR Fixed Income Allocation Strategy entered the month with elevated allocations to Floating Rate Notes, Non-U.S. Investment Grade, and U.S. Long-Term Treasurys.

Click the link below to read more about the strategy’s positioning.

Full strategy commentary: NDRFIAS202210051

Other posts

Thoughts From The Divide: The Moon

BY JON WEBB
If the Fed can “only know” the neutral rate (and hence whether policy is restrictive) “by its works”… there may be reason to think that the music is still playing. Whether it’s the price surges of misspelled celebrity memecoins ICOs such as “Joram Poowel” (a coin based on Elizabeth Warren was the “Top gainer” at the time of writing), the return of the Manufacturing PMI to positive territory “for the first time in 17 months”, or the simple good old fashioned break out of gold to all-time highs (sympathy to all mining stock bros, miners have failed to attract the same level of enthusiasm), the “restrictive” territory being bandied about seems less of a place of economic pain, and more one of milk and honey. Read more →

Thoughts From the Divide: Attribution

BY JON WEBB
In April of last year, Huw Pill caught flack for saying that Brits “need to accept that they’re worse off”. This was followed by John Authers coming to the defense of the pilloried BoE chief economist. As we wrote, Authers noted that the comments were taken out of context and explained that the BoE’s Chief Economist was describing how “after a few external shocks, inflation becomes a collective action problem” where “ideally everyone would take a share of the hit, and then they can move on. Human nature isn’t like that, and as a result, economics isn’t like that”. Now, roughly a year later, the BoE’s Catherine Mann has picked up Mr. Authers’ baton. It turns out that people who can maintain their standard of living will tend to do just that! Bemoaning the “challenge” of bringing inflation back to target, Mann said there was “a lack of consumer discipline” to rein in businesses’ pricing power, Read more →

C8 Currency Compass – “Don’t be a PANICAN” Pres Trump – April 2025

BY JON WEBB
After the tariff announcement, there was an initial USD drop on the risk that the US finds itself isolated, then a flight to the USD on risk aversion.  Interestingly, our FX models, which have been bearish on the USD since the start of January, are broadly positive USD for April.  In particular, reversing to short positions in AUD and NZD, which as commodity producers are most impacted by increasing recession risks. In the medium term, the USD remains vulnerable, with a weaker USD seemingly a policy goal for the Administration, but, as the shock of the tariff announcements work through the markets, the USD can have a period of strength first. Read more →
Back to all posts →