Content (34)

  • Residential mortgages and consumer loans

    White papers

    Residential mortgages and consumer loans

    2020-07-22T10:08:00Z

    In this paper, we focus on the case for investing in pools of residential mortgages and consumer whole loans and explore the specific benefits available to insurers making a strategic allocation to the asset class over the long term. We also demonstrate how adding residential mortgages to an investment portfolio could help insurers achieve additional portfolio-level diversification benefits and lower the overall solvency capital requirement (SCR) under the Solvency II standard formula. 

  • Our preparations for the reform of LIBOR

    White papers

    Our preparations for the reform of LIBOR

    2020-07-02T16:00:00Z

    LIBOR will continue giving way to replacement rates ahead of its retirement by the end of 2021. We will soon be familiar with SONIA in the UK, ESTR in Europe and SOFR in the US. Work continues across M&G and the industry to ensure as smooth a transition as possible to the new rates. This bank of Frequently Asked Questions aims to assist understanding of what’s happening, why it’s happening and how we expect it might affect investments.

  • Leveraged loan investment and ESG in light of Covid-19

    White papers

    Leveraged loan investment and ESG in light of Covid-19

    2020-06-30T16:04:00Z

    In its all-encompassing impact, Covid-19 must raise regard for all stakeholders. Can the private equity playbook be unaffected in the post-Covid era? Equally, with momentum building behind other societal challenges, like climate change, how can the private corporate world be encouraged to move forward?

  • Spotlight on Euro HY - The changing shape of indices

    White papers

    Spotlight on Euro HY - The changing shape of indices

    2020-06-29T15:56:00Z

    Significant swings in returns, first negative and then positive, have been a feature of the high yield markets, affecting sectors differently. During that time, the economic disruption Covid-19 has caused has led to many more credit rating downgrades.

  • Covid-19 - Institutional Fixed Income market update briefing

    White papers

    Covid-19 - Institutional Fixed Income market update briefing

    2020-06-26T15:51:00Z

    Credit markets have continued to perform well, enjoying underlying official support and as investors continue to look to add risk. In this short summary, we highlight activity within the main fixed income markets, including leveraged loans and asset-backed securities in recent weeks. 

  • Spotlight on Sterling credit - Identifying opportunities

    White papers

    Spotlight on Sterling credit - Identifying opportunities

    2020-06-24T16:04:00Z

    The strong recovery in sterling credit in Q2 can mask some underlying developments within the index, creating both risk and opportunity. Much of the current attractive credit premium at the overall index level may be attributed to a relatively small number of sectors and issuers, while in the current economic climate, even those sectors traditionally considered lower risk, may be more vulnerable than many investors think.

  • European high yield credit update

    White papers

    European high yield credit update

    2020-05-28T15:48:00Z

    Credit markets stabilised in April; however, a wide dispersion of spreads means active stock-pickers can still find potential opportunities.

  • Covid-19 Fixed income - Public credit - the end of beginning

    White papers

    Covid-19 Fixed income - Public credit - the end of beginning

    2020-04-27T15:39:00Z

    Credit markets have continued to develop in recent weeks as participants digest events and various official intervention strategies, and consider the ramifications for taking credit risk in the future.

  • Covid-19 update - European high yield market moves

    White papers

    Covid-19 update: European high yield market moves

    2020-04-24T15:49:00Z

    An influx of ‘fallen angels’, which are issuers downgraded to junk bond status by the credit ratings agencies, has impacted European credit markets as a result of the economic fallout from the coronavirus. The movement of these names into European high yield (HY) credit indices has somewhat compensated ...

  • European private debt - shifting dynamics

    White papers

    European private debt: shifting dynamics

    2020-04-24T10:52:00Z

    This paper examines the main sources of deal flow across Europe’s broad and dynamic private debt markets in 2019, highlighting some of the key observations or themes influencing deal activity in different parts of the market. It discusses the broad themes that we believe are key to investing in private debt and can help well-positioned lenders access and align opportunities that can deliver the specific outcomes sought by investors. The Covid-19 pandemic has created unprecedented uncertainty, but even during this time it’s important not to lose sight of the long term.

  • Significant risk transfer (SRT) credit opportunities

    White papers

    Significant risk transfer (SRT) credit opportunities

    2020-04-09T10:30:00Z

    Apart from very specific parts of the SRT market, such as social housing and capital call facilities, most SRT deals are exposed to corporate or consumer risk. We expect defaults to spike in the short term in most transactions, with greater variability in corporate deals than in consumer deals.

  • Consumer and Mortgage Finance

    White papers

    Covid-19 impact: Consumer and Mortgage Finance

    2020-04-08T10:26:00Z

    It’s 2008 all over again – or is it?