Asset management.

Depuis le début de l’année, les marchés obligataires évoluent dans un environnement macroéconomique mouvant, marqué par des signaux contradictoires entre les grandes zones économiques. Alors que la Chine était confrontée aux mesures protectionnistes américaines, avec en toile de fond un ralentissement de l’activité économique, l’économie américaine, longtemps perçue comme résiliente, commence à montrer des signes d’essoufflement. Les craintes d’une récession outre-Atlantique se renforcent, alimentées par la perspective d’une baisse de la consommation et une résurgence de l’inflation. 
Les investisseurs doivent ainsi composer avec des dynamiques divergentes et une visibilité limitée sur les trajectoires des taux d’intérêt aux Etats-Unis, rendant, selon nous, les stratégies obligataires flexibles plus pertinentes que jamais.

•    The postponement of tariffs between the USA and China has brought relief to the markets, thereby reducing the likelihood of recession and inflation.
•    April's economic releases from the US have not yet shown any impact related to tariffs, with CPI inflation holding steady at 2.3%. However, the PPI figures reveal a slight acceleration in the prices of imported goods.
•    Government bond yields rose at the beginning of the week after the US-China truce, but the rise was held back by the US-Iran talks and US economic releases.

The corporate hybrid market, historically European centric, has reached the global
stage, providing investors and issuers once in a decade type of opportunities. This
asset class has taken off since 2012 and has become one of the fastest growing
credit segments. Ultimately, the instrument solved a real need for issuers: they could
now issue non-dilutive equity at a competitive cost, notably thanks to the tax deductibility of coupon in most jurisdictions. On the investor side, it also made sense
in a context of low interest rates in Europe following the debt crisis in peripheral
countries. 

Europe is entering a new phase of massive investment supported by the historic rearming and infrastructure spending plans announced recently by Germany and the European commission. This major turnaround is part of broader efforts to support reindustrialisation, technological innovation, and economic sovereignty.
It also offers a highly attractive environment for Europe’s small and mid-sized companies, particularly as their cyclical and domestic profile should allow them to fully reap the benefits these investment plans will generate for the Eurozone’s economy.