Insights

Credit Suisse suffered repeated scandals and governance failures which resulted in a weaker business profile. They struggled for years to get the right management team during which time we saw the franchise weaken.

As yields rebound, investors seek high credit quality and strong SRI credentials Money markets are in a good place, offering low volatility, near zero rate sensitivity and an interesting yield. Amid rising rates and high volatility, money market investments offer investors a sound temporary portfolio solution. Well-resourced teams and rigorous risk control are key to a good risk-return ratio. Active management of interest rates and credit selection increases returns and reduces volatility in net asset values. SRI should be a significant component of asset selection too. Even though money market assets are short-term, long-term SRI issues can impact returns.

Each month we share the conclusions from the monthly strategy investment committee which provides a summary of Ostrum’s views on the economy, strategy and markets. 

Each month we share the conclusions from the monthly strategy investment committee which provides a summary of Ostrum’s views on the economy, strategy and markets. 

Producer prices on final demand are falling again in December. The headline index stands at 6.2%, a far cry from the June high of 11.2% for producer prices on final demand.

Each month we share the conclusions from the monthly strategy investment committee which provides a summary of Ostrum’s views on the economy, strategy and markets. 

US inflation (CPI) came in in line with expectations at 6.5% year on year in December. The monthly decrease in the headline CPI index amounts to 0.1%m. Energy contributed negatively (most notably gasoline), but piped gas service (+3%m) did not yet reflect the fall in prices observed on the natural gas futures markets. As a result, electricity costs increased by 1%m in December. Inflation excluding energy and food rose by 0.3%m in December and reached 5.7% year on year. Disinflation remains curbed by housing, which will take into account the already visible adjustment in rents and real estate prices (via owner-equivalent rents) several months later. The prices of medical care services, which fell significantly in October-November, are stabilizing. Used car prices keep falling despite a slight rise in prices at used car auctions in December.

A moderate recession is likely, opportunities among fixed-income markets and relative caution in European equities After a particularly turbulent year in 2022, Ostrum Asset Management’s (Ostrum AM) experts are expecting a moderate recession in 2023. However, investors may be able to capitalise on investment opportunities and attractive entry levels in the markets, particularly in fixed-income and credit. With the ongoing energy crisis in Europe, extreme caution is required in stock picking. Philippe Waechter, Chief Economist, Stéphane Déo, Head of Market Strategy, Alexandre Caminade, CIO Core Fixed Income & Liquid Alternatives, Philippe Berthelot, CIO Fixed Income and Frédéric Leguay, Head of Equity Investments, present their views on the economy and on which markets and investment strategies to prioritise in order to find value in 2023.

Each month we share the conclusions from the monthly strategy investment committee which provides a summary of Ostrum’s views on the economy, strategy and markets. 

Each month we share the conclusions from the monthly strategy investment committee which provides a summary of Ostrum’s views on the economy, strategy and markets. 

The European Central Bank announced a hike of 75 basis point in its deposit facility rate on September 8, 2022, after a first one of 50 basis point in July. These increases could be an opportunity for investors on money market funds who benefit now from positive rates after several years of negative rates.