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Chart of the week: An indigestible amount of debt?

Last Updated: September 30, 2025

Quality hasn’t just deteriorated in the sterling-denominated corporate bond market, but the lowest-rated BBB segment has also grown substantially as a proportion of the euro and US dollar investment-grade markets, which are both far bigger. If the rate of downgrades in the next recession is similar to the rate in the previous one, the next rung down in the bond markets – high yield debt markets – could get swamped.

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Chart of the week: A new norm

Last Updated: September 30, 2025

As society struggled to get back on its feet in the wake of the 2008 global financial crisis, one thing was clear: society needs the investment industry to be active and responsible. For many, this meant thinking about signing the Stewardship Code, and upping their game on proxy voting and engagement with underlying companies. For us, this created further incentive to refine our existing approach. Since then, responsible investing has become mainstream and over 2,000 asset managers around the world are now signatories to the UN-backed Principles for Responsible Investing (PRI).

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Chart of the week: Value seekers eye sterling

Last Updated: September 30, 2025

Kicking the Brexit can all the way to Halloween has done nothing but prolong the uncertainty that’s shrouded us for so long. The ‘good news’ is that we think sterling now looks so undervalued that, no matter what happens with Brexit, it should appreciate over the long term. So, those willing to hold on for a rough ride just may find themselves reaping the rewards when the Brexit puzzle is finally solved.

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Chart of the week: Big pond; small fish

Last Updated: September 30, 2025

The UK economy is small, which may sound a little strange if you know that we have the world’s fifth-largest economy by gross domestic product. But we only contributed about 2% to global economic output last year – not enough to influence global asset prices, interest rates or the pace of global growth in any meaningful way. So the good news is that Brexit is not a globally systemic event, like the financial crisis of 2007-08 or the European debt crisis of 2011-12.

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