All Corporate Bonds articles – Page 4
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White papersTracking the Transition from Tighter Policy to Corporate Spreads
We explore the historical transmission from tighter monetary policy to corporate bond spreads and the respective investment implications under our “weakflation” scenario.
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White papersThe Balance Between Corporate Profit Margins and Economic Resilience
This blog shares our views on the relationship between corporate margins and different U.S. economic growth scenarios using our corporate profit model to estimate performance.
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White papersHigher for longer: 2024 Outlook
As ever, central bank policy has the power to make or break markets.
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White papersThe overlooked appeal of short-dated euro corporate debt
Corporate balance sheets continue to provide support for opportunities in the front-end of the credit curve in the eurozone.
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White papers2024 municipal bond market outlook: Increased optimism for the year ahead
Muni bonds now offer historically elevated yields; fundamentals in the muni market remain stable; and when compared to corporate debt, tax-free muni bonds tend to display lower default characteristics.
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White papersCooling high-carbon sectors with corporate bonds
Investing in companies that are already low-carbon today does nothing to lower emissions in the future. That’s why we invest in transitioning companies with credible plans to decarbonise. How do we assess companies for their climate alignment to see if they make the cut for our TargetNetZero credit strategy?
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White papersUS bonds: Thinking beyond rates
In an economic environment characterized by rising interest rates and slowing growth, our investment professionals see fixed income as a beacon of opportunity.
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White papersWhatever happened to the recession - and does it matter for bonds?
Despite interest rates being hiked to their highest level since the mid-2000s and a mini crisis in the US banking sector, the US and other developed market economies remain in relatively robust health. A recession has, so far, been avoided.
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White papersCredit Roundtable: What Comes Next for Corporate Credit?
Do liquidity walls pose a danger to credit markets? While both investment grade and high yield defaults have remained mild, are these numbers expected to stay low? Katie Klingensmith, Bill Zox and Andrew Bogle (Brandywine Global) discuss the outlook for corporate credit.
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White papersIdentifying ‘rising stars’ amid a darkening fundamental outlook
Despite the uncertainty facing corporate credit investors, several bright spots remain. So-called ‘rising stars’ – where credit quality and ratings are transitioning from high yield to investment grade – are undoubtedly viewed as such, and at this stage of the cycle, this is an area of the fixed income spectrum which could provide an important source of alpha for investors.
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White papersCan investment-grade credit provide resilience amid uncertainty
An uncertain economic outlook and high interest rates are generally not viewed as a positive backdrop for investment-grade (IG) corporate bonds (rated BBB/Baa and above). Yet, a confluence of supportive factors is underpinning this asset class. These include relatively good credit quality, high average starting yields above 5.5%, an overall duration of about seven years and stabilisation of the banking sector.
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White papersThe Fed’s Higher-for-Longer Mantra is OK for Bonds
The Federal Reserve indicated that policy rates will likely remain elevated for some time and that neutral policy may indeed be higher than previously projected at its September 20, 2023 meeting.
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White papersOpportunity in Investment-Grade Credit
Investment-grade credit is currently offering impressive yields, with relatively less risk than other fixed income sectors, according to Josh Lohmeier of Franklin Templeton Fixed Income. He makes a case for investing in the space today.
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White papersPeter Harrison: The City needs to embrace risk
Proposals to overhaul listings rules are a step in the right direction but much more work needs to be done.
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White papersEuro-denominated short duration – only upside from here?
The ECB is at or near the end of its historic monetary tightening cycle. From this point, we believe investors in euro-denominated short duration debt may well stand to benefit – whatever happens next.
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White papersWhy ABS could be an attractive option for European insurers
A fundamental shift in the UK defined benefit (DB) pension market, sparked in September 2022 by the government’s ‘mini budget’, opened the doors to potential opportunities across the balance sheet for insurance companies. Here we explore how European insurers may be in a position to take advantage of the compelling risk adjusted returns on offer in the European ABS market.
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White papersIncome Generator: Back in Bonds
Bonds are once again becoming a cornerstone allocation within portfolios. We explain five actions bond investors could consider to capitalize on current trends we’ve identified.
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White papersFrom Low Ranger to High Plains Drifter
With the vast majority of rate hikes behind us, market volatility is set to fall. A tailwind from the reemergence of the “search for yield” is likely to follow.
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White papersDeep waves: The corporate and household debt wave
For over a decade, capital abundance has supported economic growth and provided investment opportunities across the globe. As we depart from the zero-rate world into the realm of structurally tighter financial conditions, we focus on household and corporate debt, assessing the “quality” of investments and the implications of high inflation and high interest rates on investment risk and returns.
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White papersUnder Pressure? High Yield Can Hold Up (Your Income Portfolio)
Do high-yield bonds still make sense for income investors at this stage of the credit cycle? We think so.
