The Central Bank of the United States (Fed) has again lowered the reference rates for the third consecutive time during 2019. Far are the forecasts of rate hikes at the end of 2018 when our forecast was, and continues to be, that the Federal Reserve won't be able to upload them for a long time (years) and there is still a long way down.
It is not surprising that this climate generates doubts or reflections, and this question seems valid: Should I keep my investments or should I sell and leave? In reality, there is no simple answer since there are nuances and opportunity costs that imply different responses depending on the investment profile.
On this occasion we would like to analyze the possibility of investing, with an eye to the future, to take advantage of forthcoming opportunities in dollar fixed-income.
We present a success story. Find out how our fixed income portfolio managers - with our clients as the main focus - made the best financial decisions to protect the profitability on their portfolios.
Geopolitical risk increases affecting the price of certain commodities in the short term, although its long-term influence, is very low we do not advise basing investments on it.
Somewhat surprisingly, we're still seeing global investors paying an inordinate amount of attention to the decisions from the central banks in general and the Federal Reserve in particular.
The Argentine authorities seek to extend the maturities of more than 100 billion dollars of government debt, which includes over 50 billion of the International Monetary Fund (IMF).
We are actually reading, in websites specialised in financial activity, about the imminent collapse of the equity indices or the divergence between the macroeconomic situation and the U.S. indices, which are close to record highs. What future is there for equities?
If there is a fact that shows us the importance of living in a sustainable environment and focusing on the environment is that 29 July was the Earth Overshoot Day, i.e. the day when humanity consumed all the resources available for that year. The current pace is increasing and growing exponentially every single year.
Range accruals are undoubtedly among the most popular interest-rate linked structured products. They are worth looking into if you want to receive a regular interest payment above market rates, linked to changes in interest rates.
Although the price of silver may not change its trend, there could at least be an upturn that may drive the price up from the current 16 dollars an ounce to 25 dollars per ounce within a year.
Newly created emerging companies, start-ups are a vital part of value creation in the economy and make a positive contribution to society.
Sadly, plastic debris has become frequent in marine life, where plastic is found in the stomachs of cetaceans, birds, and fish
"Sustainable development" is a relatively new concept and was first defined in 1987, in the Brundtland Report. A report that recognised that social development was taking place at a very high cost to the environment.
We are faced with a new wave marked by sustainability. In recent years, there has been a rise in demand for socially responsible investment solutions. The notable increase in awareness of economic, social and environmental sustainability is now also being clearly reflected in customer investments.
Preliminary US activity indicators point to this loss of economic dynamism in the U.S. occurring in the second half of the year.
Private Banking clients are increasingly more interested in investing in different currencies. Structured products offer solutions to materialise this type of investment idea.
Valuations of risk assets are very tight so the return depends more than ever on the Central Banks.
In 2015, the UN adopted a Sustainable Development agenda setting 17 goals that consider in aggregate terms the social, economic and environmental approach that together seek to end poverty and hunger, protect the planet and ensure that humanity enjoys peace and prosperity.
Structural changes in the socioeconomic environment cause changes in the levels of central bank rates
The European Central Bank ruled out raising official rates during 2019, a phenomenon is known as financial repression
The yield offered by thirty-year US treasury bonds reduces progressively with respect to the return provided by the Fed funds rates
At BBVA in Switzerland we can provide alternatives that meet this requirement, through structured products such as 'Twin - Win'.
The debt levels of governments and companies with respect to GDP are at a record levels, something we should take into account when investing
The difference between a strip bond and a traditional one is that a strip is a zero coupon bond, i.e. it does not pay coupons as these are included in the price. Therefore, strip they have a longer duration. For 30Y treasury bonds the duration or sensitivity to movements in interest rates is just under 20 years, while for strip bonds with the same maturity it is close to 30.
The digital population growth is a condition that will define the world, not only in business, but in politics and investment. The changes in the generations and the access that each of these had to technology defines the financial scenario and the form that the growth dynamics will take on a global level.
The United States Federal Reserve has implemented further rate hikes, as it has been announcing for some time. No clear indication has been given as to how far they will continue to rise, and therefore most investors think that there will be further hikes in the remaining months of 2018 and throughout 2019.
At BBVA Switzerland, we are conscious that our main mission is to safeguard our clients' wealth, but this objective is not incompatible with maintaining our commitment to a sustainable future. What are profitable and socially responsible bonds?