NN IP: The correction corrected

Economic Outlook: Global growth is heading for a soft patch

The global economy and the financial system combined is one big very complex general equilibrium system in which everything depends on everything else. This system has some balanced parts and some unbalanced parts. The dividing line between these runs roughly between DM and EM space and the reason is that both blocks are at very different stages in their credit cycles. Read more...

Asset Allocation: The correction of the correction

Sentiment with regard to risky assets has clearly improved over the last two weeks. Surprisingly, government bonds did not witness a meaningful correction with the Bund yield still below 20bp. It is difficult to pinpoint a single reason for this shift for the better. It is more a combination of elements that prevented the market to continue on its steep path down. Read more...

Fixed Income: Spread products still subject to risk aversion

Fixed income investors are still mainly focussed on risk, which is reflected in the continuous slide in government bond yields. Further monetary easing could spur a renewed search for yield, although a new risk has emerged on the horizon: Brexit. Read more...

Real Estate: Recovery in real estate

The correction in real estate we saw early this year was not justified by the underlying fundamentals. The ongoing improvement in DM labour markets is a key growth driver. In addition, yields are attractive relative to other asset classes. Read more...