After a strong run for risk assets so far this year, we are beginning to see isolated pockets of stress, or as JP Morgan CEO Jamie Dimon termed it "cockroaches." The most newsworthy issue has been First Brands Group who recently filed for bankruptcy protection after its use of 'off-balance sheet finance' caused the company to collapse. First Brands in fact used the same type of off-balance sheet wizardry that led to the implosion of Greensill Capital and we hope it goes witho

September was another month overflowing with geopolitical headlines and bond market catalysts: France replaced their Prime Minister, who subsequently stepped down after only 26 days in the post; the Federal Reserve cut interest rates for the first time this year and is likely to do so again at the end of the October; and the US government was forced into shutdown as the Senate failed to approve a spending bill. Despite the noise government bond yields generally flattened led

Long-end government bond yields have risen markedly over the last two months, especially in Europe. This has prompted some in the media to speculate over the health of these markets and governments; particularly in the UK. We strongly believe this negativity is overly dramatic and not based in fact. That being said our decision to limit exposure to the long-end of the yield curve has been validated as the yield on 20-year bonds across developed economies reached their highest