Fixed Income Under the Spotlight

A review of the week’s top global economic and capital markets news.

A review of the week’s top global economic and capital markets news.

Annual report offering a comprehensive review of our approach to sustainability, material factor integration, proxy voting and engagement activities at MFS for the 2023 calendar year.

While the valuation landscape for high yield has become more challenging, we believe there are still plenty of attractive opportunities that can be identified through a thorough security selection process.

An examination of market trends and dynamics across the global equity markets.

Those who have, spend. Those who don’t, borrow… then spend.

A review of the week’s top global economic and capital markets news.

Leveraging the expertise from the MFS Market Insights team to provide timely perspectives on economic and market dynamics that are top of mind for clients.

This summary explores why infrastructure should be on every asset owner's radar, shares insights on long-term investment opportunities and delves into exposure via public versus private markets.

This quarterly report provides an update on our sustainability efforts, in addition to proxy voting and company engagement highlights from the three-month period ended 31 March 2024.

With 100 years of investing experience, MFS has the unique ability to provide insight into the lessons we have learned that can help our clients meet their investment objectives.

A review of the week’s top global economic and capital markets news.

A review of the week’s top global economic and capital markets news.

In the consumer staples space, clear profit visibility has given way to tech-driven disruption. As a result, separating the winners from the losers requires deep research and an appreciation of nuance.

White paper that provides insights from the Value Strategy investment team on the long-term impact of the team's philosophy and process

A review of the week’s top global economic and capital markets news.

Co-CIO of Fixed Income Pilar Gomez-Bravo, shares her thoughts on three key tail risks and how they could impact the global fixed income markets and our portfolio positioning.

This case study highlights the importance of adopting a system-wide perspective on corporate emissions data accounting and reporting while pursuing workable solutions in the journey to net zero.

Explores the implications that higher interest rates may have for sovereign emerging market debt (EMD) investors.

A review of the week’s top global economic and capital markets news.

We explore how minimum- and low-volatility equities have behaved over the last 20 years, given the relatively strong equity markets, and how those lower-risk stocks have performed during past market drawdowns.

A review of the week’s top global economic and capital markets news.

Explore the results of MFS' 2023 MFS DC Plan Sponsor Survey! This study gathered sponsor perspectives on retirement confidence, managing investment lineups in uncertain markets, retirement income and their views on an array of legislative issues and litigation concerns.

The MFS Digest summarizes key market themes and topics affecting investors and features related thought leadership from across MFS.

In line with the Task Force on Climate-Related Financial Disclosures (TCFD), this report outlines MFS’ view on climate change and our related actions in both our investment process and business operations.

A review of the week’s top global economic and capital markets news.

Provides commentary on the current geopolitical environment in the Middle East and how the Team is positioning its portfolios.

The market is currently correcting mistaken assumptions that were based on a market cycle driven by artificially low interest rates. As market dynamics shift, the source of a company's growth will also shift.

A review of the week’s top global economic and capital markets news.

As the world shifts away from one of artificially suppressed interest rates and cheap manufacturing, investors will need to carefully consider how companies are positioned to navigate the new higher-cost paradigm.

Thought leadership paper around how factor returns behaved in periods of past rate cuts.

A review of the week’s top global economic and capital markets news.

This summary explores the impact of biodiversity on companies and provides practical ways for investors to assess the risks and opportunities from it.

A review of the week’s top global economic and capital markets news.

Stay informed with the latest research, regulatory updates, returns and emerging trends in the DC landscape.

We provide a high-level overview of recent developments in the weight loss drug category and explore how they may impact other industries. These highly effective drugs were born out of research to treat diabetes but have additional benefits.

A review of the week’s top global economic and capital markets news.

Given economic uncertainty and market volatility, we believe an appropriately sized strategic allocation to a low-volatility equity strategy may allow investors to lessen downside risk and realize long-term competitive returns without having to experience extreme swings.

A review of the week’s top global economic and capital markets news.

Which semiconductor companies will be long-term winners from the AI boom? What risks do supply chains and energy usage bring to the sector? This episode of the All Angles podcast features Genevieve Gilroy, sector lead for semiconductors and consumer staples at MFS. Genevieve describes the challenges and opportunities in the semiconductor space and explains why valuations matter when navigating the AI hype cycle.

With deeper representation across the long duration spectrum, lower historical default rates and higher yields relative to comparable quality corporate bonds, taxable municipal bonds can complement and potentially enhance LDI portfolios.

A review of the week’s top global economic and capital markets news.

Outlines why we believe European High Yield is an asset class that deserves to be on investors’ radar given its attractive valuation characteristics, fundamental strength, favorable technicals and long-term performance record.

We examine the performance of low volatility stocks through the lens of market cycles and offer our perspective on the outlook for these stocks, which we believe are well positioned as we move into the next phases of the current cycle.

A review of the week’s top global economic and capital markets news.

An examination of why there's an opportunity for value-focused investors in the current environment.

A review of the week’s top global economic and capital markets news.

This case study demonstrates our bottom-up analysis of Schneider Electric and how we identify investment opportunities in a decarbonizing world.

This paper discusses investment vehicle selection in DC plans with particular focus on the growing use of collective investment trusts (CITs) and highlights some of the important decisions plan sponsors should consider when implementing a CIT.

A review of the week’s top global economic and capital markets news.

Rob Almeida examines how indexation has amplified the disconnect between valuations and fundamentals.

A review of the week’s top global economic and capital markets news.

Examines how low-volatility stocks may perform considering the market consensus rate assumptions, which currently anticipate rates cuts, and a declining rate environment for 2024.

A review of the week’s top global economic and capital markets news.

Co-CIO of Fixed Income Pilar Gomez-Bravo, addresses many of the pressing issues facing today’s bond investors including the fight between growth and inflation, building portfolios for an uncertain world and fragility.

Examines how low-volatility stocks may perform considering the market consensus rate assumptions, which currently anticipate rates cuts, and a declining rate environment for 2024.

A review of the week’s top global economic and capital markets news.

A review of the week’s top global economic and capital markets news.

Financial markets appear optimistic to start the year, while investors currently believe inflation will slow, rates fall, and profits rise. Rob Almeida explains why those beliefs may be contradictory.

A summary of MFS views on current economic conditions and global financial market trends.

The January 2024 edition of MFS' Long-Term Capital Market Expectations includes proprietary expectations that look at return and risk across a variety of asset classes and regions. This version is presented in US Dollar terms and details our market expectations and our view of current economic and capital market conditions.

A review of the week’s top global economic and capital markets news.

In this piece, we discuss key considerations for retirement plan sponsors in 2024, including where markets may be headed, how sponsors can address declining retirement confidence, trends in regulation, legislation and litigation, and the road forward for defined benefit plans.

Global investment-grade bonds can potentially complement traditional liability-driven investment (LDI) strategies, bringing the potential for attractive risk-adjusted returns while still maintaining critical liability hedging characteristics.

A review of the week’s top global economic and capital markets news.

In this edition of the Big Mac, we discuss how the Fixed Income Fear Of Missing Out (FIFOMO) is going to be the new fear that fixed income investors will soon be facing.

A review of the week’s top global economic and capital markets news.

Forward-looking snapshot of what we believe will be relevant and may influence the markets and economy.

A review of the week’s top global economic and capital markets news.

A summary of all key themes and topics covered from All Angles Season 2 podcast.

A review of the week’s top global economic and capital markets news.

Investors seeking to capture the benefits of diversification may be well served by an allocation to international large cap value given its sector composition and the low correlation of the asset class to US equity markets.

A review of the week’s top global economic and capital markets news.

How might investors think about the year ahead? The capital cycle fuels the engine of progress, but it can also create excesses and inefficiencies. Rob examines why that’s relevant today and going forward.

A review of the week’s top global economic and capital markets news.

A review of the week’s top global economic and capital markets news.

Rob Almeida examines how a shift from supply chain efficiency to resiliency will likely affect a company's return on capital. What type of companies are positioned to navigate this paradigm shift, and which companies are not?

A review of the week’s top global economic and capital markets news.

We examine how, during economic downturns, fixed income has offered diversification benefits and reduced the volatility of portfolios that include risk assets such as equities.

Why consider an allocation to both US and non-US companies? We believe that the starting point for market today is vastly different from that of the past decade. And, with rising rates, higher inflation, and shrinking liquidity, investors who seek the best companies across the global markets could help maximize portfolio returns.

The MFS Capital Markets View entering the fourth quarter of 2023 aggregates insights on the equity and fixed income asset classes across regions and countries.

Retirement income is top of mind for many plan sponsors these days. In this paper, explore what MFS is solving for and what have we have learned so far.

Successful investors in emerging market debt must contend with complexity and uncertainty on several levels. We believe our integrated approach, plus our ability to identify and model material risk factors, enables us to better manage risk while focusing on capitalizing on investment opportunities.

The negative stock/bond correlation from 1998 until 2019 was the anomaly, not the positive relationship that began in 2022. While correlations of asset classes normalize, the importance of security selection and manager allocation will matter immensely.

Explore the results of MFS' 2023 MFS Global Retirement Survey! In this retirement insight we share the responses from US participants on market event impacts, retirement confidence and the power of quality advice.

Real yields in the US are either too high or equity valuations are well above fair value. Investors who can understand which enterprises possess real value and those that do not, will find themselves in an enviable position compared with the broader market.

With the federal funds rate at or near peak levels, we believe that cash is likely to start underperforming credit in the period ahead. We favor deploying some credit risk as an attractive alternative to a cash allocation.

This paper provides an overview of constructivism stewardship and how it works in practice.

Views on an Increasingly Complex World

How can leaders effectively integrate DEI into their organizations? In Episode 6 of the All Angles podcast, MFS’ Chief Diversity Equity & Inclusion Officer Michelle Thompson-Dolberry shares her thoughts on meeting people where they are, building the process rather than checking the box and practical ways to apply DEI in the workplace.

We propose that now might be the time for plan sponsors who have closed or frozen their DB plans to give these plans a fresh look.

Carol Geremia speaks to how policy, the economy and individual can play a bigger game in each of their areas.

From Theory to Practice

We examine the strategic case for investing in the taxable municipal bond asset class and present the argument for active investment to seek alpha. We also review why we think it is currently an attractive time to consider an allocation to the taxable municipal market.

This case study highlights the power of active management, and how a forward-looking, bottom-up, ESG-rating agnostic approach can unveil untapped investment opportunities for investors.

We discuss the four stages of the typical cycle for emerging markets local debt, the fundamental framework of the marketplace, and the potential opportunity set offered to today's investors.

We have begun a new regime, where investors will need to do a lot more homework and may find it advantageous to use a mosaic of not only valuation, but also fundamental tools, to help guide the way through this cycle.

This article delves into how we assess financial materiality, governance factors and return drivers in emerging market debt.

MFS Chief Economist provides perspective on the current economy, central bank thinking, and the trajectory of a potential recessionary environment.

In this era of volatility, what are the implications for asset allocation and what risk and opportunities sit beyond the headlines? In partnership with Eurasia Group, a geopolitical risk firm that helps clients understand and navigate the changing global landscape, MFS uncovers the major implications on emerging technologies and energy transition.

The prevailing macro regime, the “fear of the Fed,” is likely to end in the near future. A shift away from it should bring better prospects for fixed income returns, and in our view it may be time to consider raising allocations to fixed income.

How we help our clients achieve their investment goals by employing an investment approach that integrates environmental, social and corporate governance.

Provides insight on MFS's deep history and expertise fixed income as well as its risk managed approach and Global Research Platform.

An outline of our voting guidelines and procedures on a wide range of topics, including how we assesses and vote on environmental, social and governance issues.

This Policy prescribes the application of laws adopted by certain countries that are signatories to the United Nations Convention on Cluster Munitions.