Content (107)
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White papersFed’s recent efforts have buoyed the high yield market
Over the course of a 10-week rally post crisis, we saw the high yield spread over Treasurys tighten into the mid-500s before widening modestly in the second week of June to 632 basis points. By June 19, spreads tightened into 606 and the average yield-to-worst ended at 6.45%.
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White papers
Are senior corporate loans a hidden gem?
With seemingly little notice by anyone outside the senior corporate loan market, the asset class where we spend our waking hours has quietly propelled itself to a historic rally. There are still a few trading days to go in the quarter, and the S&P/LSTA Leveraged Loan Index’s quarter-to-date performance already stands at approximately 11%.
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White papers
High yield market reacting to positive news, though potentially negative catalysts loom
The US high yield market got off to a slow start in May, but later surged following promising news on initial trials of several experimental COVID-19 vaccines, a rebound in oil prices and the ongoing stimulus from global central banks, with the expectation of more to come.
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White papers
Bullish and bearish COVID-19 developments for late May
Headlines tracking the scope of the coronavirus pandemic — such as new daily cases and death rates — may be driving investor sentiment. We’ve been monitoring key reports to gain some visibility into how much longer the crisis could continue. Here are the latest health and public policy updates related to COVID-19, developments that we consider either bullish or bearish, and the economic and market impacts.
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White papers
Fed Chair Powell takes center stage
The week before the Memorial Day holiday began with two high profile appearances from Federal Reserve (Fed) Chair Jerome Powell, starting off with Sunday’s interview on CBS News program 60 Minutes and following up with Tuesday’s testimony before the US Senate Banking, Housing and Urban Affairs Committee.
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White papers
Further volatility in high yield likely – our thinking is to take advantage of this, adding prudently to risk
In this Q&A, Eaton Vance high-yield experts provide an update on market movements and changes in the macro environment and offer their thoughts on investment opportunities at this juncture.
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White papers
Outlook grows more hopeful for EM debt
As the world continues to grapple with the health and economic implications of the COVID-19 pandemic, we believe the emerging-markets (EM) debt sector has reached a key milestone: While many factors remain difficult to quantify, we have potentially passed the point of “peak uncertainty” that jolted global markets in the first quarter. We believe a potentially bullish picture is taking shape for the future of EM debt.
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White papers
Fundamentals return to the forefront in emerging-market debt
Volatility related to the COVID-19 outbreak and dramatic oil price decline in Q1 2020 precipitated a large sell-off in risk assets, including significant outflows from emerging-market (EM) debt funds.
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White papers
We see upside potential in floating-rate loans, but not in a straight line
Following a month of sharply rising loan prices, the welcome rebound in the senior loan market is taking a breather at present. To recap the round-trip experience to date, the average price of the S&P/LSTA Leveraged Loan Index traded in the 96 context as recently as mid-February, plummeted to a low around 76 by the third week of the now-historic March and has since rallied to its current resting point around 86 — and here it has hovered for the last week or so. Though the market is roundly “halfway back,” prices today still rank among the lowest in the long history of the asset class.
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White papers
Can the benefits of corporate ladders outclimb market volatility?
When I entered the investment management industry in the mid-1980s, the 10-year US Treasury note yielded over 10%. Since then, there’s been a remarkable trend lower in yields. This decline has often resulted in impressive annual performance for corporate bond investors, like last year’s 14.2% return.
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White papers
Insights - Oil price declines do not change long-term ESG risk analysis
Five years ago, responsibly managed Calvert Funds (Calvert Funds) began to exit positions in stocks and bonds of oil & gas companies and never returned. These decisions were based on environmental, social and governance (ESG) analysis at the time, and Calvert Research and Management (Calvert) continues to believe today that the numerous ESG risks associated with oil and gas exploration and production are too high to justify investment in the stocks and bonds of companies that directly own material amounts of fossil fuel reserves.1
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White papers
Longer-term economic fallout may hinge on how regions attack virus
The emerging markets debt team has been closely monitoring the novel coronavirus, COVID-19, and tracking its impact on the global economy, and we offer this update as of March 10.
