Perspectives: Episode 63 – The fast and the furious - central banks give support to income investors

In this episode, Escala Partners CIO, Tracey McNaughton, shares her views on recent central bank action in response to higher-than-expected inflation and the implications it has for the US dollar and for investors seeking income returns. She also discusses how private debt is helping fixed income investors rediscover the benefits of diversification.   (0:47) - The risk of recession is rising across a number of major economies, and we had the World Bank come out last week forecasting a global recession as a possibility. (5:22) - Central bank action has been fast and furious – it is not just the pace of rate hikes it is the size of the hikes that are having an impact. (8:02) - What are your thoughts on the outlook for the US dollar (and by default the Aussie) and what are the implications? (12:52) - Speaking of weaker currencies, the Chinese yuan made headlines last week when it fell through $7 USD. (14:47) - We have been having a lot of conversations recently with clients and the common theme in all is the renewed focus on income. What other investment implications are you seeing in the current climate?