Preferred Shares Traded in a Tight Price Range With Reduced Volumes in June

The preferred share market was quiet in June, trading in a tight price range with reduced volumes. The subdued nature of the activity, at least in part, reflected uncertainty in global financial markets due to increasing risk of a global trade war developing. At the beginning of the month, the United States imposed tariffs on…

Preferred Shares Rebounded Nicely in May

Following three consecutive down months, preferred share prices rebounded nicely in May. Share prices rose almost 2.0% in the first two weeks of the month, due to a lack of new issues combined with good investor demand. The pick-up in demand was explained, at least partially, by rising 5-year bond yields in early May, which…

Financial Professional Survey: Advice from Both Sides of the Brain

Advice from both sides of the brain With the return of market volatility in 2018, financial professionals are meeting rocky conditions head on with solid, left-brained logic. Individual investors, however, are reacting with strong, right-brained emotion. To succeed this year, financial advice will need to come from both sides of the brain—and balance data-driven investment…

Preferred Shares Continued to Take a Breather and Absorbed Some Issuer Specific News in April

The preferred share market had another month of negative returns, the third month in a row.  The market continued to take a breather and absorbed some issuer specific news in April. The S&P/TSX Preferred Share index returned -0.42% in the month.

Top Concerns for Professional Fund Buyers in 2018

HIGHLIGHTS Rising rates and rising volatility add up to a market that favors active management for 80% of respondents. Managing duration and incorporating alternatives are key components of rising rate strategies. Seven in ten find it essential to invest in alternatives to help diversify portfolio risk. Global Survey of Professional Fund Buyers Report Professional investors…

Institutional Investors Hit the Risk Trifecta in the First Quarter of 2018

The opening salvo of a US trade war with China, the first of three to four anticipated rate hikes from the Fed, and a bona fide 10% market correction marked a jarring risk trifecta that surprised many investors in the first quarter of 2018. But a closer look at institutional investor sentiment shows not only…

Equity Market Volatility Caused Weakness in Preferred Share Prices in March

For the second month in a row, equity market volatility caused weakness in preferred share prices. During March, U.S. president Trump threatened to impose tariffs; first on steel and aluminum and then on certain goods imported from China. The U.S. actions, if carried out, risked initiating a trade war that would reduce global growth and…

Examining Six Equity Market Narratives That Aren’t Quite Right

6 Equity Market Narratives Chief Market Strategist David Lafferty explains the six equity market narratives he hears in the media and from clients. Equity volatility returned in late March, if only for a few days. On fears of an impending trade war between the US and China, among other reasons, equities lost roughly 5% over…

Following a Strong Start to the Year, Preferred Shares Gave Back Much of Their Gains in February

Following a strong start to the year in January, the preferred share market gave back much of its gains in February. Preferred shares were affected by the substantial stock market volatility that occurred at the beginning of the month. The S&P500 equity index fell over 10% from January 31st through midday February 9th, while the…

What’s Fueling Global Markets?

  Senior Investment Strategist Esty Dwek Roditi (Geneva) and Chief Market Strategist David Lafferty (Boston) explore factors influencing stock and fixed income markets around the world, and potential portfolio implications. How rising rates and higher volatility may create more opportunities for active fixed income managers Why central bank policies in Europe and the US face…

The New Volatility Regime

The New Volatility Regime Chief Investment Strategist David Lafferty on how rising rates and an overheating economy have changed the market narrative for investors. Volatility Returns For six days in February, volatility made a comeback. This is true whether you use the more statistically robust definition of ?the ups and downs of the market? or…

Three Ways Institutional Investors Are Preparing for the Fallout of a Market Shift

When. Not If. With market volatility making a comeback, what?s keeping institutional investors up at night? From asset bubbles and interest rate increases to low yields, the Natixis 2017 Global Survey of Institutional Investors reveals their top concerns ? and how they seek to meet their average long-term return assumptions. 1. Institutional investors are looking for…

Canadian Preferred Shares Demonstrated Their Diversification Value as They Enjoyed Good Gains in January

The Canadian preferred share market once again demonstrated its diversification value as it enjoyed good gains while both Canadian bonds and common stocks lost ground in January. The Bank of Canada (BOC) raised its administered rates this month, and that helped the preferred share market absorb significant new issue supply and move to higher prices.…

Reflections on the Stock Market Correction

February 8, 2018 saw a 1000+ point loss on the Dow Jones Industrial Average1 (-4.15%), along with a 100+ point loss (-3.75%) for the S&P® 500 Index.2This downturn officially put the US stock market in correction territory ? typically defined as a 10% or greater sell-off from its peak. Since their respective peaks on December 26,…

End of an Era? Looking at Where Bonds May Go From Here

End of the Bull Market for Bonds? Exploring the potential bond portfolio implications of higher interest rates in an aging bull market. So Good for So Long Do investors realize how good they?ve had it over the last 8+ years? On the obvious side, the length and strength of the equity bull market has been…

Market Outlook 2018: Assessing Potential Risks and Opportunities

Market Outlook 2018: Assessing Potential Risks and Opportunities Natixis Chief Market Strategist David Lafferty shares some thoughts on what investors might expect in the year ahead.

Canadian Preferred Shares Mixed in December From Illiquid Conditions

Preferred share prices declined at the start of December, but ground back toward unchanged levels in the illiquid conditions in the second half of the month. The early weakness was due to new issue supply, as well as selling related to unwinding of structured note hedges. The S&P/TSX Preferred Share Index returned +0.05% in December.

The Outlook for 2018 Investment Outlooks

DAVID LAFFERTY, CFA® Senior Vice President and Chief Market Strategist Natixis Investment Managers ? U.S. Distribution It’s that time of year again, when everyone releases their year-end investment outlooks and predictions. In fact, the only thing that will show up in your inbox more frequently than investment outlooks will be articles and blogs about how…

Good Investor Demand Pushed Preferred Share Prices Higher and Yields Lower in November

Following several weeks without any issues, two new ones came in late November, but were insufficient to satisfy investors? appetites. The anticipated unwinding of structured note hedges linked to passive preferred share ETFs continued, but was offset by demand for actively managed alternatives. The S&P/TSX Preferred Share Index returned 0.70% in November.

It’s the End of the World as They Know It. And They Feel Fine.

After a decade of low interest rates, low volatility, and high investment returns, professional investors and institutional decision makers foresee plenty of risk on the horizon including geopolitical uncertainty, potential market spikes and asset bubbles, and the specter of rising interest rates. In order to be better positioned for a changing market, respondents in the…