Read through our latest Xiaomi Equity Research Report – a concise deep-dive into one of the most compelling long opportunities across global technology and consumer innovation.

This report explores Xiaomi’s transformation from a leading smartphone manufacturer into a fully integrated “Human × Car × Home” ecosystem, driven by rapid EV expansion, HyperOS ecosystem growth, and high-margin internet services. We assess the key drivers behind our upside case, including accelerating EV profitability, ecosystem monetisation, and long-term valuation potential.

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Disclaimer: The information, opinions, and views expressed in this report are provided for informational and educational purposes only and do not constitute financial, investment, legal, or tax advice. Nothing contained in this report should be construed as a recommendation, offer, or solicitation to buy, sell, or hold any security, asset, or investment product.

All analysis and projections reflect the authors’ views at the time of publication and are subject to change without notice. Readers should conduct their own independent research and, where appropriate, seek advice from a qualified financial adviser before making any investment decisions. Past performance is not indicative of future results, and all investments carry risk, including the potential loss of capital.

Read through our 2026 Western Risk: An Emerging Opportunity Report – a deep-dive analysis into the structural risks facing advanced Western economies and the strategic case for emerging markets as a diversified source of alpha.

This report explores mounting pressures from rising sovereign debt burdens, increasing market concentration within the S&P 500, and worsening demographic trends across developed economies. It then examines how shifting macro conditions – including US dollar weakness and AI-driven capital expenditure cycles – are reshaping global capital flows.

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Read through our 2025 Industry Coverage Report - a sector-by-sector breakdown of M&A trends and insights across TMT, Healthcare, FIG, Industrials, Energy & Infrastructure, Consumer & Retail, and Real Estate - compiled from credible industry publications and distilled into one concise deck.

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Sector Heads: Daniel Bilalov, Abhishek Chavan
Analysts: Yu See Loi, Janise Yip, Nelson Chan

Read our latest equities report on Green Plains Inc. (NASDAQ: GPRE), which examines the company’s transformation from a volatile commodity ethanol producer into a structurally protected, low-carbon biorefining platform. The report provides a deep dive into GPRE’s strategic pivot, highlighting the impact of 45Z clean fuel tax credits, carbon capture and sequestration, and proprietary MSC technology on margin expansion and earnings visibility. With detailed analysis of policy tailwinds, sustainable aviation fuel demand, product diversification into ultra-high protein and renewable corn oil, and a significantly de-risked balance sheet, the report outlines the catalysts driving a potential valuation re-rating. Valuation frameworks, peer comparisons, and a clear assessment of risks and mitigants offer actionable insights for investors assessing the company’s long-term upside.

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Read our latest M&A deal report, which explores Siemens' $10.6 billion acquisition of Altair Engineering, a move set to strengthen Siemens’ industrial software and AI-powered simulation capabilities. The deal aims to enhance Siemens’ Digital Twin and Xcelerator platforms, unlocking new revenue streams through high-performance computing, data science, and AI integration.

With projected $150 million in annual cost synergies and over $1 billion in long-term revenue impact, Siemens is positioning itself at the forefront of the rapidly growing Product Lifecycle Management (PLM) market. However, with an 18.7% acquisition premium, is this a strategic masterstroke or an overpriced gamble? Our report delves into valuation metrics, deal rationale, regulatory risks, and the broader market implications, providing a comprehensive breakdown of this high-stakes transaction.

For more insightful deal analysis like this, sign up to our website, where we publish in-depth reports across various sectors on a regular basis.

Read our latest equities report that explores the impact of interest rate cuts on key sectors, offering insights into Energy, Healthcare, Real Estate, Technology, Utilities, and Financial Institutions. With data-driven analyses, the report highlights how these sectors navigate evolving market conditions, examining major M&A deals, sector-specific opportunities, and growth trends.

The team looks into renewable energy advancements, healthcare innovations, and real estate revitalization, fuelled by improved borrowing conditions. It also addresses challenges like fintech growth, AI-driven shifts in technology, and sector-specific risks tied to inflation and regulatory scrutiny. Investment strategies, portfolio recommendations, and tactical versus strategic asset allocations provide actionable insights for our readers.

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Dive into our latest M&A deal report, which explores Verizon's $20 billion acquisition of Frontier Communications, highlighting the strategic expansion of Verizon's fiver network across 31 states and Washington D.C. The acquisition aims to boost Verizon's customer base, enhance broadband and mobility services, and achieve $500 million in annual cost synergies by it's third year. Frontier's strong presence in underserved U.S. regions offers Verizon a competitive edge in broadband market growth and fiber-optics demand driven by AI and data center expansions. The reports delves into financial metrics, market conditions, valuation analyses, and the strategic alignment of the acquisition with Verizon's growth objectives, providing a comprehensive overview for our readers.

For more insightful analysis like this, please sign up to our website where we publish reports across various sectors on a regular basis.

Closing Price- $27.11 (as of 09/09/2024)

Dividend Yield- 5.91% (monthly basis, paid $1.60 per share in the past year)

1y Total Returns- 10.55%

Sharpe ratio-  2.55 (1yr past trading)

Expense ratio- 0.25% (5 year)

Effective duration- 4.78 years

30-day SEC yield- 7.13% (standardised yield, based on most recent 30-day period of dividend and interest earnings)

1.) High Yield Corporate Bonds and a Brief Outlook

Corporate Bond Outlook

Corporate bond investments generally outperformed treasuries in the first half of the year, supported by higher income payments and falling spreads. Riskier investments like high-yield corporate bonds, bank loans, and preferred securities outperformed investment-grade corporates.

High Yield Bonds (Junk Bonds)

A high-yield bond, or junk bond, is a corporate bond that represents debt issued by a firm with the promise to pay interest and return the principal at maturity. Junk bonds are issued by companies with poorer credit quality. A bond is considered non-investment grade if it has a rating below BB+ from Standard & Poor's and Fitch, or Ba1 or below from Moody's. Bonds with ratings above these levels are considered investment grade. Credit ratings can be as low as D (in default), and most bonds with C ratings or lower carry a high risk of default.

• Fallen Angels — A bond that has been downgraded by a major rating agency and is headed toward junk-bond status because of the issuing company’s poor credit quality.
• Rising Stars — A bond with a rating that has increased because of the issuing company’s improving credit quality. A rising star may still be a junk bond, but it’s headed toward being investment quality.

Advantages:

• Corporate bonds remain a solid investment, a resilient US economy has been a key driver of the strong corporate bond performance to start the year. Despite concerns about rising borrowing costs given the aggressive pace of Federal Reserve rate hikes, corporate fundamentals remain solid.
• Corporate profits remain elevated according to the Bureau of Economic Analysis, although the first quarter of the year saw a modest decline from the all-time high reached in the fourth quarter of last year.
• They offer a higher payout compared to traditional investment-grade bonds: The companies issuing these bonds do not have an investment-grade rating, they must offer a higher ROI. This means that if a junk bond pays out, it will always pay out more than a similar-sized investment-grade bond.
• If the company that issues the bond improves their credit standing, the bond may appreciate as well: When it is clear a company is doing the right things to improve their credit standing, investing in high-yield bonds before they reach investment grade can be an excellent way to increase the return while still enjoying the security of an investment-grade bond.
• Bondholders get paid out before stockholders when a company fails: Bondholders will get paid out first before stockholders during the liquidation of assets. If a company defaults the bonds and stocks it issued are worthless, since bondholders get paid out first, they have a greater chance of getting some money back on their investment over stockholders in the event of a default. Once again, the name “junk” can be very misleading as such bonds can clearly provide a safer investment than stocks.
• Recession-resistant companies may be very underrated. The big deal with high-yield corporate bonds is that when a recession hits, the companies issuing these are the first to go. However, some companies that don’t have an investment-grade rating on their bonds are recession-resistant because they boom at such times. That makes the companies issuing these types of bonds safer, and perhaps even more attractive during economic downtimes. A great example of these types of companies is discount retailers and gold miners. Note that the subprime mortgage crisis proved how much rating agencies could get it wrong or change their standing quickly based on new data.

Disadvantages:

• The potential risk of default that comes with the lower credit rating, means that investors may not be paid the interest that was promised and capital will be at risk if companies default.
• Higher volatility and potentially.
• Interest rate risk, all bonds face a risk that if the market's interest rates rise, it will cause the price of the bond to decrease. (However, in the current climate, we have seen a hike in interest rates by the FED in the last year, but we are likely to see a drop in rates in September. Reuters expect FED to cut rates by 25 basis points as of 11/09/24).

2. Fundamentals of the ETF

• The fund tracks the Bloomberg US High Yield Fallen Angel 3% Capped Index composed of U.S. dollar-denominated, high yield corporate bonds that were previously rated investment grade. The fund will invest at least 80% of its assets in the component securities of the underlying index, and the fund will invest at least 90% of its assets in fixed income securities of the types included in the underlying index.
• Listed on the Nasdaq exchange.
• Fund inception was June 14th 2016 and falls under the fixed income/ bonds asset class
• Fixed rate coupon with a maturity greater than 1 year. Distributions are paid by the fund on a monthly basis (similar to dividends received from individual shares, investors will receive 'distributions' when invested in ETFs).
• With an expense ratio of 0.25% and net assets exceeding $1.6 billion, FALN offers investors a cost-effective and liquid avenue to gain exposure to this niche segment of the bond market.

What's the objective?

• For bonds that were downgraded in terms of credit quality, the idea is that these bonds still retain stronger fundamentals and higher recovery prospects compared to their junk bond counterparts that were born into speculative-grade territory. Many investors sell so-called "fallen angels" simply because those bonds were downgraded by credit rating (they are subject to a higher risk of default), not necessarily because of flaws in their financial fundamentals. That means FALN can buy them at relatively bargain prices. Later, if they are upgraded back to investment-grade, they’ll likely rebound in price.
• Fallen Angel bonds are a small and often overlooked portion of the corporate bond markets. However, some unique return drivers may help fallen angel bonds outperform other types of corporate bonds.
• Price rebounding following a downgrade- over the short term, Fallen Angel bonds are often oversold as investors rush to sell ahead of the downgrade, sometimes resulting in a rebound of the bond's price.
• Potential to be upgraded back to investment-quality rated bonds.

3. Holdings

Asset Allocation

Bond Breakdown

Exposure

Exposure Analysis

FALN's portfolio is well-diversified, holding 184 individual bonds. No position makes up more than 3.11% of the fund, resulting in a good mix of positions that would only be at severe risk in a sustained economic contraction.

From a sector perspective, the bulk of the fund is in Consumer Cyclicals. This is common among high-yield bond funds. The overweight in Cyclicals is important because in the event of an economic downturn, these bonds likely would get significantly punished as funding concerns would mount amidst a slowdown in overall macro activity.

From a credit and risk perspective, note that the fund holds 78.08% of holdings are BB rated. This indicates a better credit quality than the peer average of B+. This asset can be seen as a potentially lower risk compared to other HY bonds. However, the potential drawback is that its yield to maturity is lower at 7.02% in comparison to a category average (similar bond ETFs) of 7.6%.

4. Performance and comparison

Over the long term Fallen Angels have outperformed the broad Investment Grade and HY market.

• Fallen Angels represented by Bloomberg US HY Fallen Angel 3% Capped Bond Index.
• IG (corporate) represented by Bloomberg US Corporate Bond Index.
• HY represented by Bloomberg US Corporate High Yield Index.

Growth of $10,000

If we compare the growth of iShares Fallen Angels USD Bond ETF to the performance of the S&P 500 index, we can see that FALN has trailed. However, we have seen that 2023 leading into 2024 has been a strong year for the S&P 500 overall. By the end of November, the index was up about 21%, recovering significantly from a tough 2022. However, the gains have been unevenly distributed, with much of the success driven by a few major tech companies—referred to as the “Magnificent 7” (including Apple, Amazon, and Nvidia). These stocks alone saw impressive returns of over 70%, significantly boosting the index, while the broader market’s performance was more modest.

We can see however, that FALN has been much less volatile in comparison (as expected) with an average percentage change in the investment's value, either up or down in the past month being 1.06%. I believe that corporate bonds remain a strong alternative to equities or a strong addition to a portfolio.
(Note that comparison between two asset classes is sometimes misleading as they are fundamentally very different.)

Three notable peers worth comparing are the iShares Broad USD High Yield Corporate Bond ETF (USHY), iShares iBoxx $ High Yield Corporate Bond ETF (HYG) and the VanEck Vectors Fallen Angel High Yield Bond ETF (ANGL).

FALN vs USHY

USHY is a passively managed fund by iShares that tracks the performance of the ICE BofA US High Yield Constrained. It was launched on Oct 25, 2017. USHY, with a broader mandate to track the entire high-yield corporate bond market, may offer a more diversified exposure but lacks the targeted focus on fallen angels that FALN provides

The correlation between FALN and USHY is 0.84, which is considered to be high. That indicates a strong positive relationship between their price movements. We can see the 1Y return of 13.89% for FALN is higher than USHY which has had a 1Y return of 13.19%. However we can see that both ETFs have experienced similar volatility levels in the past and have very close returns.

In my opinion, USHY is a broader investment and is a good alternative ETF to hold but potentially lacks the potential future growth that FALN could have.

FALN vs HYG

HYG is a passively managed fund by iShares that tracks the performance of the iBoxx $ Liquid High Yield Index. It was launched on Apr 11, 2007

We can see that FALN comes up on top when looking at the 1-year return and also the YTD return (by a fine margin). FALN also has a lower expense rate.

If we analyse the expected return compared to risk, we can also see that FALN is a better option as it has a higher Sharpe ratio of 2.55 in comparison to 2.48.

We can see long term (10 year) that FALN has historically proven to have much higher returns. Although past results don't necessarily indicate the same future results, we can see there's a strong positive correlation between the two ETFs (0.83) and FALN has performed much better than HYG. This is attributable to the price appreciation of the fund's 'riskier' bonds over the long term.

FALN vs ANGL

VanEck Vectors Fallen Angel High Yield Bond ETF tracks the performance of the BofA Merrill Lynch US Fallen Angel High Yield Index. It was launched on Apr 10, 2012. It is very similar to FALN as it follows the same objective. We can see however that in every period, FALN has outperformed ANGL every time.

5. Summary

The current outlook for U.S. high-yield bond ETFs is relatively positive, despite economic uncertainties. With the U.S. economy expected to slow and potential Federal Reserve rate cuts anticipated, high-yield bonds are becoming attractive for investors looking to secure higher returns. Yields on high-yield bonds are currently elevated, averaging around 7.7%, which provides a good income opportunity compared to equities. While the strategy for HY bonds carries inherent risks associated with them, iShares Fallen Angels USD Bond ETF has a 1yr total return of 10.55%, a well-diversified portfolio, a robust performance track record, and a cost-effective structure making it an attractive option for investors seeking income and potential capital appreciation.

FALN main benefits:

Attractive Yields and Potential Price Appreciation

With U.S. interest rates peaking after an extended period of Federal Reserve rate hikes, the market outlook for high-yield bonds, including fallen angels, is increasingly positive. Yields on fallen angels are typically higher than average corporate bonds due to their downgrade status. This allows investors to lock in higher yields. Moreover, as economic conditions stabilise and the Fed potentially eases its monetary policy, fallen angels offer significant price appreciation potential. Historically, these bonds have demonstrated strong rebound tendencies, as many of their issuers regain stability and see credit upgrades over time.

Favourable Credit Market Environment

The economic outlook also supports the case for the FALN ETF. Despite concerns over inflation, corporate fundamentals remain relatively robust. Default rates for high-yield bonds, including fallen angels, are in line with historical averages of around 3-4%, which is manageable considering the high yields. As the economy slows but avoids a deep recession, companies may not face the severe financial stress that triggers massive defaults. This is particularly true for FALN, many of which were investment-grade for a reason—solid underlying businesses that temporarily faced challenges. When these companies recover, their bonds often perform exceptionally well. Thus, investing in FALN provides exposure to bonds that are likely to experience a credit rating rebound, especially as market conditions improve.

Diversification and Risk Mitigation

One of the key advantages of the iShares Fallen Angels Bond ETF is that it offers broad diversification across sectors and issuers, which mitigates some of the risk typically associated with high-yield bonds. By holding a basket of bonds from different industries with the top three industries being Consumer Cyclical, Communications and Energy, FALN reduces the impact of individual bond defaults or sector-specific downturns. Investors looking for income generation and capital preservation may find that FALN aligns well with their objectives, especially as interest rate risks are expected to decrease.

In conclusion, the iShares Fallen Angels Bond ETF stands out as a good investment due to its high yield, potential for price appreciation, and diversified exposure to recovering corporate bonds. If an investor is looking for exposure to corporate bonds from companies that have decent credit ratings and is looking for potentially higher ROI than other IG or HY bond ETFs then FALN is a good option. However, although the fund's bonds have the potential to recover its IG status it is important to note that these bonds carry a higher risk of default and the exposure to some distressed companies may make it unsuitable for a risk-averse investor.

FALN Fund Brief https://www.ishares.com/us/literature/product-brief/fallen-angels-rising.pdf

FALN Fund Prospectus https://www.ishares.com/us/literature/prospectus/p-ishares-fallen-angels-usd-bond-etf-10-31.pdf?stream=reg&product=ISHFALN&shareClass=NA&documentId=1263512~1263510~920966~2253109~2251612~1871405~1896135&iframeUrlOverride=%2Fus%2Fliterature%2Fprospectus%2Fp-ishares-fallen-angels-usd-bond-etf-10-31.pdf

FALN Annual financial statements https://www.ishares.com/us/library/stream-document?stream=reg&product=ISHFALN&shareClass=NA&documentId=1263512~1263510~920966~2253109~2251612~1871405~1896135&iframeUrlOverride=%2Fus%2Fliterature%2Fannual-financial-statements%2Fafs-ishares-high-yield-bonds-etfs-10-31-en.pdf

Disclaimer: The views and opinions expressed in this article are solely those of the author and do not constitute financial advice. Readers should not interpret any information provided here as specific guidance for financial decisions. Always consult with a qualified financial advisor before making any investment or financial choices.

Applying for finance roles can be highly competitive, and small errors can make or break your chances of landing that coveted interview.

Whether you're just starting out or fine-tuning your application, it’s crucial to be aware of common mistakes that many candidates make when applying to finance roles.

Below are seven common pitfalls to avoid, join our team to learn more now!

1.        Failing to Communicate Clearly in Your Cover Letter

Your cover letter is your chance to demonstrate your communication skills and explain why you’re the right fit for the role. Many candidates, however, use this space to either repeat what’s on their CV or submit a generic cover letter that lacks focus. Worse, some fail to show genuine enthusiasm for the position.

Another common issue is the fact that when the position lists the Cover Letter as optional, be sure to research the company, in my opinion if you are not sure your cover letter is best tailored to the role or you have any concerns with it, it might be best to forego uploading it at all.

Actionable Tip: Use your cover letter to add value beyond your CV. Focus on why you're applying for the role and how your experience aligns with the company’s goals. Briefly explain key achievements and the transferable skills you bring, but avoid rehashing your entire CV. Personalize the letter to the company and express genuine interest in the position.

2.         Using Passive Language in CVs

Many applicants fall into the trap of using passive language when describing their responsibilities and achievements. Phrases like "was involved in" or "responsible for" don't showcase your direct impact on a project. Employers in finance look for candidates who can take ownership and demonstrate measurable contributions.

Actionable Tip: Use strong, active verbs to describe your achievements. For example, instead of saying, "Was responsible for analyzing data," try, "Analyzed financial data to forecast trends, resulting in a 15% improvement in predictive accuracy." Be clear, direct, and result-oriented.

3.        Ignoring the Power of a Strong Personal Brand

Many candidates fail to consider their online presence and personal brand when applying for finance roles. Recruiters often check LinkedIn profiles and other online platforms to learn more about candidates.

If your profile is outdated, incomplete, or inconsistent with your CV, it can hurt your chances. Having a strong online presence that aligns with your CV shows consistency and professionalism.

Actionable Tip: Regularly update your LinkedIn profile to reflect your latest achievements, skills, and qualifications. Ensure your profile matches the tone and content of your CV. Share finance-related content, articles, or insights to demonstrate your active interest in the field. This enhances your professional image and makes you more visible to potential employers.

4.        Forgetting to Address Career Gaps

Unexplained gaps in your work history can raise red flags for employers. Many candidates leave these gaps unaddressed, leaving recruiters to make assumptions. Whether you took time off for personal reasons, studies, or travel, it’s important to address these gaps professionally.

Actionable Tip: Be upfront about any gaps in your employment. Use your cover letter to briefly explain any career breaks and what you did during that time—whether you gained new skills, pursued education, or engaged in personal projects. This shows transparency and a proactive approach, both of which are valued in finance.

5.        Neglecting to Follow Up After Applications

Once candidates submit their application, many make the mistake of waiting in silence for a response. In competitive fields like finance, following up can demonstrate your interest and professionalism, as long as it’s done respectfully.

Actionable Tip: Send a polite follow-up email about 7-10 days after applying if you haven’t received a response. Reaffirm your interest in the role and mention any key points from your application that make you an ideal candidate. A simple, courteous message can help keep you top of mind and might prompt the recruiter to take a second look at your application.

6. Overloading Your CV with Unrelated Information

It’s tempting to include every job, course, or project you’ve ever completed, but doing so can dilute the impact of your relevant experience. Keep the CV strictly 1-page.

Employers want to see a clear connection between your background and the role you’re applying for. Including too much irrelevant information can make it harder for them to see why you’re a good fit.

Actionable Tip: Prioritize experiences and skills that are directly relevant to the finance role. If you’re applying for an investment banking position, highlight your financial modeling, valuation, and Excel skills rather than unrelated part-time jobs. If you're early in your career, focus on internships, relevant coursework, and transferable skills from other industries.

7. Not Following the Submission Guidelines

Many companies provide specific instructions on how they want applications submitted, including file formats, document names, and additional materials. Failing to follow these guidelines can result in your application being rejected without even being reviewed.

Actionable Tip: Carefully read the job posting and follow all submission instructions to the letter. If the company requests a CV in PDF format, don't submit it as a Word document. If they ask for a certain subject line in your email, include it. This attention to detail shows that you can follow directions—an important skill in finance.

Conclusion

Securing a role in the finance industry demands more than impressive credentials; it requires strategic application and meticulous attention to detail.

By avoiding these common mistakes and implementing the actionable tips provided, you enhance your chances of making a favorable impression. In a highly competitive field, it's often the small nuances that differentiate successful candidates from the rest.

Remember, every aspect of your application—from your cover letter and résumé to your online presence and follow-up communications—contributes to the overall impression you make.

Approach each element with the same level of professionalism and precision that the finance industry expects.

Breaking into the finance industry is a competitive game, and in the world of numbers, your CV is your first big test. It’s not just a document—it's your  first impression, your golden ticket to landing that dream interview.

So, how do you create a CV that screams, “I’m the one”? Here are the five essential steps to crafting a finance CV that not only stands out but gets you in the door.

1. Tailor Your CV to the Role

Every finance job has unique requirements, and your CV should reflect that. Avoid sending out the same generic CV for each role. Instead, carefully read the job description and highlight the skills and experiences that align with what the employer is seeking.

For example, if the job posting emphasizes experience with financial modeling or data analysis, make sure these skills are clearly outlined in your CV, perhaps under a specific section like "Technical Skills" or within the bullet points of your work experience.

Pro Tip: Hidden keywords in job descriptions can be your secret weapon. Use tools like Jobscan to analyze the job listing and ensure your CV includes the right keywords that align with applicant tracking systems (ATS). Employers often use ATS to filter candidates before they even see your application, so matching these keywords is critical to getting noticed.

2. Numbers > Words: Show, Don’t Just Tell

Finance is a results-driven industry, and employers want to see tangible proof of your impact. Wherever possible, quantify your achievements.

Use numbers to showcase the results of your work, such as “Improved forecasting accuracy by 20%,”or “Managed a portfolio worth €5 million.” These details provide concrete evidence of your abilities and are much more compelling than vague claims.

Recruiters are looking for tangible proof that you can deliver, and using data to back up your claims instantly sets you apart from the pack.

Pro Tip: Don’t just list your responsibilities—sell your story. For every bullet point, think in terms of context (the problem you were solving), action (what you did), and result (the measurable outcome). This transforms your CV from a list of tasks into a showcase of accomplishments.

3. Keep the Structure Clear and Concise

A clear, well-organized CV is easier for employers to scan quickly—an important factor when they are reviewing hundreds of applications. Start with your contact information at the top, followed by sections like “Education,” “Experience,” and “Skills.” List your work experience in reverse chronological order, with the most recent first.

Use bullet points to break down your responsibilities and accomplishments under each role. Avoid lengthy paragraphs; concise, easy-to-read points allow the recruiter to quickly grasp the highlights of your career.

Pro Tip: The “Six-Second Rule” can make or break your CV. On average, recruiters spend only six seconds on an initial scan of a CV. Make those seconds count by placing your most impactful experiences and accomplishments at the very top.

4. Focus on Relevant Skills and Experiences

While it’s important to demonstrate a broad range of skills, be selective in what you highlight. Focus on experiences and skills that are most relevant to the job you're applying for.

For finance roles, employers often look for technical skills such as Excel proficiency, financial modeling, or familiarity with tools like Bloomberg or Python. Ensure these are prominently featured if they align with the job requirements.

Additionally, don’t forget to include any certifications (e.g., CFA, FRM) or relevant coursework that demonstrates your commitment to professional development​.

Pro Tip: Show, don’t tell. If you mention technical skills like financial modeling, consider including a “Projects” section where you briefly explain how you’ve applied these skills in real-life scenarios, such as building a financial model during an internship. It’s more convincing than just listing the skill.

5. Proofread and Maintain Professional Formatting

Attention to detail is crucial in finance, and your CV is no exception. Ensure there are no spelling or grammar errors, and that your formatting is consistent throughout the document.

Choose a simple, professional font, and ensure there’s enough white space to make the document easy to read. Keeping your CV to one page is ideal unless you have extensive experience that warrants more space.

Pro Tip: PDF over Word every time. Always submit your CV in PDF format unless specifically instructed otherwise. This locks in your formatting, preventing awkward shifts in layout that can happen when a Word document is opened on different devices.

Gilt Performance:

Since reaching a 2024 high of 4.49% on May 20th, 10-year Gilt yields have experienced a prolonged decline as inflationary concerns continue to diminish. After the annual inflation rate remained at the 2% target in both May and June the Monetary Policy Committee voted 5-4 to lower the UK bank rate by 25 percentage points to 5% on August 1st. Subsequently, 10-year Gilt yields fell below 4% by August 2nd, the first time since February, and reached a low of 3.93% by August 14th. In terms of further bank rate cuts, the Bank of England did emphasise their vigilance about second-round inflationary effects but Governor Andrew Bailey later stated that the effects appear “smaller than we expected”.

Declining UK 10-Year Gilt Yields Between June and August

Bank of England Inflation Forecast

Expectations of lower GDP growth have also contributed to the decline in Gilt yields. GDP grew by 0.7% and 0.6% in Q1 and Q2 respectively, which marked the highest quarterly growth rate since 2022. The services sector exhibited the strongest growth at 0.8% in Q2, with widespread growth across the sector, while both the production and construction sectors declined by 0.1%. However, growth is forecast to fall back to 0.4% and 0.2% in Q3 and Q4 respectively as fiscal policy is expected to tighten. This strengthens the case for the Monetary Policy Committee to stimulate the economy with further bank rate cuts.

Bank of England GDP Growth Projection

The trajectory of GDP growth remains the most significant factor shaping the outlook for 10-year Gilt yields. While there is broad consensus that the upcoming Autumn budget, to be delivered by the Chancellor of the Exchequer on October 30th, will involve fiscal tightening, the nature and severity of policies remain unclear. Consequently, although we expect the Monetary Policy Committee to further lower the Bank Rate to support GDP growth, the exact timing and extent of the adjustment remains uncertain. This uncertainty suggests that we may see significant fluctuations in 10-year Gilt yields following the budget announcement. However, with the Federal Reserve expected to lower US interest rates at its September meeting, alongside an appreciating GBP, UK Gilt yields may decline in the near term as British securities become increasingly attractive in comparison.

GBP Performance:

The GBP depreciated against its major trading partners after the August 1st Monetary Policy Committee meeting due to uncertainty regarding whether the UK bank rate would be lowered. Markets had only priced in less than a 60% chance of a cut upon the announcement of the 25-percentage point reduction and the GBP subsequently depreciated against the USD from $1.28 to $1.27 by August 6th, while it depreciated against the EUR from €1.18 to €1.16 in the same period.
Thereafter, the GBP began to recover ahead of the Jackson Hole Economic Symposium which took place between August 22nd and August 24th. Here, US Federal Reserve Chairman Jerome Powell clearly expressed that “the time has come for policy to adjust”, citing falling inflation and a cooling labour market. Meanwhile Phillip Lane, European Central Bank Chief Economist, conveyed greater vigilance about further rate cuts. The GBP subsequently appreciated against the USD to $1.32 by August 24th, its highest level since March 2022, while it only recovered to the August 1st rate of €1.18 against the EUR.

USD per GBP and EUR per GBP between June and August

General Election:

Sir Keir Starmer became the UK’s prime minister after the Labour Party achieved a majority victory in the 2024 general election, ending 14 consecutive years of Conservative rule. At 412, Labour more than doubled their seats from 201 in the 2019 general election, while the Conservatives only won 121 seats. Following the election on July 4th, the GBP appreciated against the USD from $1.28 to $1.30 by July 12th, while it appreciated from €1.18 to €1.19 against the EUR in the same period. Meanwhile, 10-year Gilt yields fell from 4.31% to 4.21% by July 12th and continued to a low of 3.93% by August 14th.

The UK’s government debt stood at 97.60% of GDP in the 2023-2024 financial year, over 10% higher than the pre-pandemic level. The Labour Party is built upon traditionally central-leftist ideologies and, speaking on August 27th, Sir Keir Starmer has already warned of a “painful” October budget as markets anticipate higher taxes. This incentivises the Monetary Policy Committee to further lower interest rates such that we may expect both lower bond yields and a weaker GBP.

Disclaimer: The views and opinions expressed in this article are solely those of the author and do not constitute financial advice. Readers should not interpret any information provided here as specific guidance for financial decisions. Always consult with a qualified financial advisor before making any investment or financial choices.

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In our latest financial report, the team delves into the significant movements within the UK sovereign bonds and currencies landscape during January 2024, alongside a broader analysis of European, US, Chinese, and Japanese markets. This comprehensive review not only highlights the major economic developments but also provides a forward-looking perspective on market trends.

UK Sovereign Bonds: Navigating a Recession and Market Reactions

Our analysis reveals that the latter half of 2023 saw the UK economy enter a technical recession, marked by two consecutive quarters of negative GDP growth. This downturn triggered a notable shift in market expectations, leading to a drop in 10-year Gilt yields by 107 basis points, as investors anticipated potential rate cuts. However, as early 2024 unfolds, the UK economy shows signs of narrowly escaping this recession, with a modest GDP growth forecasted and a slight rise in Gilt yields. Our team closely examines these dynamics, exploring how the market's predictions of "higher for longer" interest rates could shape the bond market in the near future.

Currency Movements: Stability Amid Economic Challenges

Our report also scrutinizes the performance of the British Pound (GBP) against major currencies, particularly the USD and EUR. The GBP exhibited stability, with notable appreciation during Q4 2023, driven by improving macroeconomic conditions. This resilience is significant, especially as markets anticipate interest rate cuts later in 2024. The implications of this currency stability, set against a backdrop of stagnation and upcoming fiscal policies, are thoroughly analyzed in our coverage.

Broader European and Global Perspectives

Expanding beyond the UK, our report provides an in-depth analysis of the broader European sovereign bonds and currencies, with a particular focus on the European Central Bank's stance on interest rates amidst fluctuating inflation rates. Additionally, we explore the dynamics of the US treasury yields, which faced volatility due to shifting market expectations and economic resilience, and the Chinese economy's struggle with deflationary pressures and a turbulent real estate sector. Lastly, the report touches on Japan's economic scenario, where mixed economic indicators and foreign investor confidence have created a unique market environment.

In this January 2024 edition, our team has examined these diverse financial landscapes, providing insights that are crucial for understanding the current and future state of global markets. For further information, please sign up to our newsletter where we publish reports across various sectors on a regular basis.

A big thanks to our team that worked together to produce this report:

Head: Emem Jones

VP: Harry Yeung

Analysts: Heison Chan, Tyler Holt, Jingxuan Niu, Aryana Rahman, Aman Dugar, Joshua Fung, Jocelyn Sim, Sam Ho, Scott Chan, Tony Tang, Rhydian Williams

Navigating the Future of Investment: A Summary of the Report on Exchange Traded Funds (ETFs)

The report, "ETFs Unveiled: Navigating Market Dynamics and Shaping the Future of Investment," by Nakshtra Sharma and Ritika Singhal, provides an in-depth analysis of the evolving landscape of Exchange Traded Funds (ETFs). It delves into the latest trends, strategies, and innovations shaping the ETF market, offering valuable insights into how these financial instruments are adapting to global market dynamics.

Key Themes and Contents

1. Regulatory Challenges Post-Brexit:The report highlights the regulatory complexities faced by ETF issuers in the UK following Brexit. Many ETFs, including those from prominent players like Amundi and BNP Paribas, have experienced delays in UK registration due to Brexit-related regulatory issues. The Financial Conduct Authority (FCA) has introduced a post-Brexit overseas fund regime, but clarity on this is still awaited.

2. Performance of Passive vs. Active Funds:Passive index-tracking equity income funds have underperformed compared to their actively managed counterparts. This underperformance is attributed to the passive funds' heavier emphasis on small-cap and value stocks, which have not fared as well as other segments in recent times.

3. Record Inflows into High-Yield Bond ETFs:High-yield bond ETFs have witnessed record inflows, particularly in the US, where November saw a staggering $11.6 billion invested. This surge highlights strong investor interest in income-generating products amid a challenging economic environment.

4. Growth of Covered-Call ETFs:Covered-call ETFs have seen exponential growth, with assets under management (AUM) soaring from $3 billion in 2020 to $26 billion by the end of 2023. This growth reflects a shift in investor preferences towards income-generating strategies, particularly in low-interest-rate environments.

5. SWOT Analysis of the ETF Market:The report provides a comprehensive SWOT analysis, identifying global economic uncertainty, market saturation, and regulatory complexity as key threats. However, it also points out the opportunities presented by high-yield bond ETFs, the entry into emerging markets, and the potential for innovation in response to regulatory developments.

6. Impact of Inflation and Interest Rates:The report discusses the implications of global inflationary trends and interest rate fluctuations on ETFs. Lower interest rates, which are anticipated by central banks like the U.S. Federal Reserve, could stimulate economic activity, influencing demand for ETFs tied to rate-sensitive sectors.

7. Resilience Amid Market Shifts:ETFs have demonstrated resilience in adapting to market shifts and regulatory changes. The flexibility in fund domiciles, particularly in response to Brexit, and the ability of ETFs to offer broad diversification across sectors and regions have been crucial in navigating these challenges.

8. Strategic Innovations and Future Outlook:The report also touches on the potential future developments in the ETF market, including the possible introduction of cryptocurrency ETFs and the growing importance of ESG (Environmental, Social, and Governance) criteria in ETF offerings. These innovations are likely to drive further growth and diversification in the market.

Conclusion

The report underscores the adaptability and resilience of ETFs in the face of global economic uncertainties and regulatory challenges. It emphasizes the growing importance of innovative strategies, such as covered-call funds and ESG-focused ETFs, in meeting the evolving needs of investors. As ETFs continue to expand into emerging markets and adapt to changing regulatory landscapes, they are well-positioned to remain a vital component of global investment portfolios.

This comprehensive analysis provides investors and financial professionals with valuable insights into the current state and future direction of the ETF market, highlighting both the opportunities and challenges that lie ahead.