Income & Fixed Interest Newsletter – January 2016
While January 2015 set the bar high in terms of outright excitement in macro markets, the start of 2016 didn’t fail to live up to the hype. January was characterised by a number of our themes coming to fruition in a very short period, with many markets dislocating and idiosyncratic moves becoming the focus. Positioning unwinds dominated. A plunging oil price forced all commodity prices (ex-gold) lower and this was reflected in materially lower bond yields and weaker equity markets. A number of consensus trades such as long equities, bottom fishing in commodities, short bonds, long credit, long USDJPY, short EURUSD etc. etc. were washed out and repriced meaningfully.