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The case for a career in bond investing
  + stars: | 2023-10-27 | by ( Felix Martin | ) www.reuters.com   time to read: +7 min
I sensed familiarity with the recent fate of fixed income benchmarks such as Austria’s hundred-year government bond. For this reason, when bond yields are low, the sensitivity of capital prices to inflation and interest rate shocks is high, and vice versa. The appreciating greenback has been a drag on much of the global fixed income universe for the past decade. The real reason to go into fixed income investing, I explained, is that you get to tell governments what to do. Now that the end of monetary anaesthesia has awoken fixed income from its 15-year coma, I told the MBA students, you’ve got your chance.
Persons: Bonds, That’s, Torsten Slok, GMO’s, Liz Truss, , Bill Clinton’s, James Carville, you’ve, Peter Thal Larsen, Streisand Neto, Thomas Shum Organizations: Reuters, Treasury, Reuters Graphics Reuters, Apollo Global Management, U.S ., JPMorgan, Economist, UK, Thomson Locations: U.S, Venezuela
Recession-shy investors can turn to capital cycle
  + stars: | 2022-11-10 | by ( Edward Chancellor | ) www.reuters.com   time to read: +7 min
But another factor is the capital cycle: the amount of investment entering or exiting an industry. Capital spending by energy firms and miners has declined since the investment boom peaked in the middle of the last decade. Capital spending by large European oil companies has fallen from more than twice depreciation in the mid-2010s to less than one times, according to Bernstein. A similar picture emerges in the mining industry, whose capital spending boom also ended around eight years ago. Freeport-McMoRan (FCX.N), one of the world’s largest copper producers, cut capital spending from $7.2 billion in 2014 to $2.1 billion last year.
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