Henrietta Pacquement is the Head of the Global Fixed Income Team at Allspring Global Investments (formerly known as Wells Fargo Asset Management). In this episode we look at the differences between the US and European fixed income markets, the likelihood of a recession and how to place portfolios and the impact of the energy transition on credit. Please enjoy the show.
Overview of Podcast with Henrietta Pacquement, AllSpring Global Investments
01:30 From astrophysic to fixed income
03:00 On inflation
07:00 Dealing with behavioural aspects of inflation and wage growth
08:00 Difference between US and EU fixed income markets
09:00 Some cracks are starting to form in the US economy
09:30 Looking to close our underweight on interest rates
12:00 How does the energy transition play out in the credit market?
13:00 We see a lot of innovation, including green and transition bonds
14:00 Credit instruments can be quite precise in targeting sustainable outcomes
15:30 The war in Ukraine has given us a preview of what the world looks like when we have to quit fossil fuels cold turkey and it is not pretty
17:30 Does the long term nature of the energy transition affect duration of credit related to it?
19:00 Measuring outcomes in green and transition bonds
24:00 There have been a number of green bonds that have been stripped of their green credentials
28:00 Do you see higher levels of defaults already?
30:00 Longer duration? We will go neutral first
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