News & Research

A new Qontigo white paper analyzes the effect of changes in term spreads, or the difference between long- and short-term sovereign bond yields, on the performance of the iSTOXX Developed and Emerging Markets ex USA PK VN index. The findings show a rise in term spreads has, overall, helped returns for the global real estate index since 2019, but the relationship varies depending on regional exposure and period.

Fed recession warning weighs on bond yields; Dollar stalls over lower interest-rate and economic growth expectations; Lower equity volatility partly reverses spike in portfolio risk.

Global Value’s winning streak rolls on; Asset diversification continues to plunge; Investors flock to US dollar’s safety.

Sentiment declined sharply last week, becoming negative in Asia ex-Japan, Japan and developed Europe, with the latter ending bearish for the first time since early April. We continue to see a divergence of sentiment between developed- and emerging-market investors, with the former remaining bearish and the latter increasingly bullish.

ECB emergency meeting supports peripheral Eurozone debt; Swiss franc takes off after surprise rate hike; Cross-asset sell-off squeezes diversification opportunities.

Sentiment remained negative in the US and developed Europe last week, and bearish in global developed markets. Hopes for further monetary and fiscal stimulus out of China managed to keep sentiment positive in Asia ex-Japan, global emerging markets and China, for the time being.

Volatility and correlations jump as global markets fall; Country and currency risk continue to march up; China bucks the trend.

A new Qontigo white paper runs the numbers on the iSTOXX Developed and Emerging Markets ex USA PK VN, a global real estate index, to understand the relationship between expected inflation in the US, Europe and the UK, and index returns. The findings show that the sector has represented a good overall inflation hedge over the last couple of years, although regional and portfolio considerations can create exceptions.

Eurozone yields soar as ECB raises forward guidance; Yen tumbles over BoJ divergence; Cross-asset co-movement partly offsets lower stock volatility.

Drop in US Consumer Discretionary points to bearish sentiment; Factors drive a brief pause in the steady upward march of US volatility; Japan’s YTD return turns positive.

Sentiment continues to be poor or bearish among developed-markets investors, except in Japan, where the weak yen and dovish BoJ are underpinning a positive mood.

Real estate has long had the reputation of being at least a partial hedge against inflation, since both rental income and property values typically respond positively to inflationary pressures. The iSTOXX Developed and Emerging Markets ex USA PK VN Index has lived up to this reputation historically and is continuing to do so in the current inflationary environment.