All Corporate Bonds articles
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White papersWhat We Already Know About The Recovery
And why bonds and stocks may not be pricing in such different outcomes.
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White papers
Not created equal: Surveying investments in non-investment grade U.S. corporate
Institutional investors searching for yield and current income opportunities have increased their allocations to non-investment grade corporate bonds and loans. The case for investing in these assets is clear with the 10-year Treasury under 3% and historically low rates across the yield curve. Non-investment grade U.S. corporate debt has historically produced yields in the 6-10% range or greater.
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White papers
Blog | Will equities become the next QE asset class the Fed buys?
The Fed recently broadened the range of assets it will buy in Quantitative Easing (QE) programs, to include corporate bonds and sub-investment grade issues, supplementing US Treasuries and (agency) MBS. Given the severity and broad-based nature of the shock to the US economy from the coronavirus, this begs the question as to whether the Fed will follow the Bank of Japan’s lead and include US equities in its range of QE assets?
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White papers
Blog | Will the Fed catch some of the falling angels?
The coronavirus shock, and enforced shutdowns, come after a period of high corporate debt issuance, in response to very low interest rates. Credit quality has fallen in recent years, judged by the share of BBB-rated bonds currently making up over 40% of the FTSE USBIG Index, and the share of AA and AAA-rated bonds being near 25-year lows
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White papers
Blog | Yield Book Add in for Non Agency RMBS: Model Scalars and Prepayment Dials in the Time of COVID-19
The coronavirus pandemic has created turmoil across financial markets and throughout the entire US economy, and the Non-Agency RMBS sector may be especially susceptible to the broader economy’s deterioration.Yield Book offers users the flexibility to adjust key performance measures and override key macroeconomic inputs in order to assess the implications across mortgage performance and bond analytics. In this guide, we demonstrate how to utilize model scalars and prepayment dials for representative deals from the CRT (CAS2019-R01, STACR 2019-DNA1, STACR 2019-HQA1), Jumbo near Prime (SEMT 2019-1) and Non-QM (AOMT 2019-1) sectors, and the resulting impact on collateral performance projections.
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White papers
Will COVID-19 lead to sustainable change?
The COVID-19 pandemic has led the world into the largest social distancing experiment in history. A USD 2 trillion US government stimulus programme and US Treasury yields below 1% are all the result of the crisis. In addition, oil prices have fallen to below USD 20 a barrel as demand destruction has exacerbated the effects of a collapse in OPEC’s pricing policy. Will the world go back to ‘status quo’ when we exit this dislocation? Probably not. We believe the learnings from the ‘go-remote’ experiment are here to stay. The implications for the future of energy, real estate, work, education, health care delivery and so forth are vast.
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White papers
Delivering Low Volatility Exposure to High Yield Bonds
The last few weeks have been challenging for business the world over. People working from home and aggressive social distancing have led to business contraction and the expectation of rising default. On March 19, 2020, an S&P report expected that the U.S. trailing 12-month speculative-grade corporate default rate would rise to 10% within the next 12 months, from 3.1% in December 2019.
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White papers
Opportunities and qualities in GCC bonds
Perspective from Franklin Templeton Fixed Income.
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White papers
Corporate Hybrid Bonds for Insurance Investors
To overcome the low-yield problem, European insurers are eager to identify assets that offer the right balance between quality and return.
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White papers
European Research Flash Report
Global economic growth expectations for 2020 have been adjusted significantly downwards amid the spreading of the COVID- 19 virus and oil price decline. Based on this, at least some leading European economies are expected to go into recession in 2020. But, in contrast to the GFC, the current event-driven crisis could prove temporary as economic fundamentals were strong at its outset, possibly signalling a V-shaped recovery.
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White papers
Treasuries Market Flashes Red, Fed Unleashes Tsunami
As global financial markets grapple with assessing the economic impact of COVID-19, U.S. Treasury yields reached unprecedented levels. On March 9, 2020, the yield on the 10-year U.S. Treasury Bond fell to an intra-day low of 0.32%. This was a drop of more than 125 bps from just three weeks earlier. As market participants fled risk assets, the flight to quality drove the entire U.S. yield curve below 1.00%.
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White papers
Blog | Coronavirus-led panic drives equity PE ratios down to 2012 levels
With global equities having lost up to 36% in performance since their peak on February 19, what does this mean for equity market valuations? The latest 12-month forward PE ratios show that the US has returned to levels last seen during the 2018 correction, while those of other markets have reached valuations close to 2012 levels.
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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
Corporate Hybrid Bonds Introduction
In this short video, Senior Portfolio Manager, Julian Marks offers an overview of corporate hybrid bond markets and outlines the philosophy and approach adopted across Neuberger Berman’s portfolios. He provides examples of the kinds of issuers the team typically consider and reviews current market conditions.
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White papers
Monthly Market Monitor - March 2020
Eaton Vance Monthly Market Monitor presents a concise review of economic and asset class data through clear and impactful charts. Providing timely information across a broad array of markets and investment topics, this guide serves as a helpful resource in providing connectivity between changing market events and implications for investor portfolios. Use Eaton Vance Monthly Market Monitor as a critical desk reference that enables more informed discussion and understanding of financial markets.
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White papers
Market Perspectives - Viral uncertainties March 2020
The Covid-19 virus is turning from a regional health crisis to a global issue; uncertainties about the global economic impact have been rising sharply. After weeks of resilience, equity markets have sold off in late February, catching up with the safe-haven rally in core bonds seen earlier.
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White papers
ESG Investing In Corporate Bonds: Mind The Gap
This research is the companion study of three previous research projects conducted at Amundi that address the issue of socially responsible investing (SRI) in the stockmarket (Berg et al., 2014; Bennani et al., 2018a; Drei et al., 2019). The underlying idea of this new study is to explore the impact of ESG investing on asset pricing in the corporate bond market.
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White papers
Another Breakthrough Year for China Bonds
The market made it into global indices but also broke records for defaults in 2019 and is facing uncertainty from the coronavirus: we take stock for 2020.
