All Corporate Bonds articles – Page 3
-
White papersThe Importance of Monitoring Credit Spreads In Positioning Equity Portfolios
On February 5, 2024, the yield spread between the Baa corporate bond and the 10-year Treasury bond sat at 157 bps—just 9 bps wider than the narrowest level seen since 2000.
-
White papersThe fight against inflation enters extra time
Despite closing in on their inflation targets, US and European central bankers appear hesitant to cut rates. Jonathan Gregory explores the differing drivers behind this, as well as the overall implications for bond markets.
-
White papersMacroeconomic and financial market forecasts - February 2024
Macroeconomic forecasts as of 2 February 2024
-
White papersA Rangebound Study in Long U.S. Corporates
At this point in the market cycle, we see the long corporate sector as a fitting example of the rangebound conditions that ebb and flow.
-
White papersThe (Still) Compelling Case for Broadly Syndicated Loans
Even as the rate-hiking cycle looks close to its end, loans look well-positioned for strong performance in the year ahead, due largely to the high contractual income on offer.
-
White papersFixed Income Quarterly – Corporate bonds: a brighter outlook as clouds lift
We expect global corporate bonds to be supported in 2024 by a soft landing in the major developed economies and easier monetary policy. Overall, we believe company fundamentals are robust, particularly in the investment-grade market, with high cash levels, low leverage, and encouraging earnings expectations.
-
White papersCrossover bonds: tilting to income and quality
This insight concludes a three-part series about investing in crossover corporate bonds rated BBB to BB1. Here, we look at the tactical macro rationale for investing in crossover. The second insight made the strategic case for this segment of ratings by delving into strong fundamentals, favourable valuations and regulatory drivers. The first insight introduced crossover and explored how the segment could replace investment grade (IG) in an allocation.
-
White papersCrossover bonds: a replacement for investment grade
This insight is the first of a three-part series about corporate credit rated BBB to BB, which is also known as crossover.
-
White papersTreasury yields mixed on strong economic data
U.S. Treasury yields were mixed last week and spread sectors outperformed as fourth quarter U.S. GDP exceeded expectations. The market continues to price in a 50% chance of a U.S. Federal Reserve rate cut by March, and around five total cuts for this year.
-
White papersOpening Bell – an excess of pessimism about the economy, though not in markets
We expect 2024 to outperform the current pessimistic economic forecasts but struggle to beat the optimism priced into equity markets.
-
White papersNow may be the time for core bonds: Five themes for 2024
With inflation falling and the US Federal Reserve (Fed) signalling an end to its historic tightening cycle, the landscape for bond investors is beginning to look much clearer. Even after a sharp rally in late 2023, yields still look more attractive than they have in a decade.
-
White papersMacroeconomic and financial market forecasts - January 2024
Macroeconomic forecasts as of 10 January 2024
-
White papersCorporate Credit Outlook 2024: High Tide for Yield?
Weakening economic fundamentals shouldn’t scare away corporate bond investors in 2024—provided they keep a close eye on credit quality.
-
White papersSurfing the Curve With Short-Duration Credit
Why short-dated bonds may offer the most attractive risk-adjusted yield as the economy slows.
-
White papersA Compelling Value Proposition in EM IG Corporate Debt
Elevated yields, improving credit quality and lower interest rate risk are presenting a strong case for EM investment grade corporate debt—especially in a soft landing scenario.
-
White papersFixed-Income Outlook 2024: Bonds Roar Back
The tide has turned for bonds. Here’s what we think is in store for 2024.
-
White papersTime for credit – why we like investment grade
To better understand the impact of potential macroeconomic scenarios on the asset class, we have undertaken a sensitivity analysis of the global investment grade corporate bond market. This sensitivity analysis points to one clear implication: the importance of investing in fixed income despite ongoing uncertainty. We believe fixed income, in particular credit markets, have become a much more attractive proposition for investors.
-
White papersHigher rates will start to bite the corporate sector in 2024
The impact of rate increases on businesses is expected to intensify in 2024. Businesses haven’t been impacted much by higher rates so far because they have used the cash they collected during Covid and refinance needs have been limited. However, refinancing needs will rise in 2024 Small and medium sized companies and lower rated HY issuers will be most impacted. The spillover from higher rates will be more limited for IG companies.
-
PodcastCIO perspectives on what lies ahead in 2024
M&G’s CIOs Jim Leaviss and Fabiana Fedeli share their perspectives for 2024, considering how to potentially drive returns through the uncertainty ahead, and highlighting the importance of being selective in a challenging economic environment.
-
White papersFOMC on Hold — Rate Cuts by May 2024?
As expected, the Federal Open Market Committee (FOMC) decided to keep its key interest rate, the federal funds rate, unchanged at 5.25%–5.50%.
