Bond Portfolio Advancements: Institutional Groups and Market Trends

ADVANCEMENT OF THE BONDS IN PORTFOLIOS IN RELATION TO THE INSTITUTIONAL GROUP AND PORTFOLIO SIZE The securities markets have had a very horrible year in 2022. The truly national banks had to quickly raise their crucial rates despite very high or more steady growth rates after more than 10 years of cheap or even poor financing costs. At that moment, security yields accelerated over the yield bend. As a result, over the course of 2022, the American Central Bank's (Took care of) critically important rate increased from 0.25% to 4.50% and the European National Bank's (ECB) from -0.50% to 2.00%. The €STR, a symbol for the euro zone's currency market (which has completely replaced the EONIA as of January 3, 2022), emerged from the negative territory it had been anchored in since about 2014 to close the year at an annualized rate of 1.90%. The exposition of the class bond resources was negatively impacted by this sudden increase in rates. The market for sovereign securities in the euro zones then saw very poor performances (18.5% year-over-year decline on the FTSE Eurozone Government Security IG list). With the Speculation Grade classification (high quality grade) recording a presentation down 14.2% for the IBoxx Euro Corporates, the corporate security market turned out to be a little more challenging. Bring back the album in full. Finally, the market for high return securities fared better (the Bloomberg Euro High return file ended the year down 10.6%), propelled by investors' appetite for risk and search for income. However, given that most of the long-term yield increase has already been made, the outlook for 2023 should be more favorable. With the yield now positive, securities may essentially be seen as a source of consistent income for portfolios. We may see a rapid rise of the decline (- 2.9 rate focuses) that began a few years ago with regard to customary securities in the arrangement of institutional financial supporters in this particular circumstance, where the value influence has likely been outweighed. With bond purchases resumed in 2023, which were frequently mentioned by the interviewers, it should be possible to halt this decline or even reverse the trend. Whatever its family, bonds continue to be the primary resource class for all institutional financial backers and account for 65.4% of the total amount of resources managed. This is partially explained by regulatory concerns for some financial backers, the cost of other resource classes for substances subject to Dissolvability II, or more broadly by the resource obligation and the executive imperatives for all players who should revisit their individual situations. According to information from public records, French safety net providers had a net progression of interest on bonds held that was categorically negative for the second consecutive year: - €23.8 billion as opposed to - €18 billion the year before. Bonds continue to make up a smaller portion of institutional investors' portfolios, which are under €2 billion Sheet (35.5%), although the hole with more substantial financial supporters has decreased compared to last year. This is explained by an increase in the amount of bonds in the portfolio in 2022, which is quite different from financial backers whose resources under management exceed €20 billion.