Fixed Income Opportunities Created by Market Volatility

The Federal Reserve’s Fed indecisiveness combined with a stabilising euro is making positions in the Eurozone look increasingly attractive, says AXA Investment Management

AXA Investment Managers 7 October, 2015 | 2:00PM
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Morningstar's "Perspectives" series features investment insights from third-party contributors. Here, Chris Iggo, CIO Fixed Income Europe and Asia at AXA Investment Managers and Nick Hayes, manager of the AXA WF Global Strategic Bonds, comment on where market volatility has created value for fixed income investors.

Oil and Commodity Prices

The rapid decline in oil prices is coming to an end, but for many oil producers, for example in the shale market in the US and offshore oil fields, the current oil price is a problem. Lower prices are pushing commodity-reliant countries to devalue their currencies and Saudi Arabia recently announced that the current oil price has forced them to sell some foreign investments to cover a fund deficit.

Depending on at what level the oil price settles, the supply-and-demand dynamic in the industry is likely to shift. Some oil companies have cut back capital expenditure, which will restrict supply in the future and what’s happening with Glencore at the moment is a reflection of the broader commodities market.”

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AXA Investment Managers  are an asset management company specialising in investment management for a wide range of clients