All Credit articles
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White papersFrontloading
The global economy remained largely resilient in the first half of 2022, despite war in Eastern Europe, commodity shortages, and inflation. However, this is leading most major central banks to turn increasingly hawkish and frontload rate hikes which should weigh on growth.
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White papers
PM Spotlight: The Art and Science of Investing
In this inaugural edition of PM Spotlight, we sit down with Henrietta Pacquement, CFA, Senior Portfolio Manager and Head of Global Fixed Income, to profile her unique background and leadership in her field of expertise.
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White papers
Fixed Income Insights (Canada Edition) - September 2022
Global government bonds sold off in August, notably in long-dated maturities, as G7 central banks maintained their aggressive inflation-fighting stances and negated speculation of an imminent pivot, despite the risk of recession. Canadian high yield credits’ flat returns modestly outperformed negative returns elsewhere.
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White papers
Are we entering the zone of oversold credit?
With the Aperture Investors SICAV - Credit Opportunities Fund reaching its three year anniversary this August, Simon Thorp looks ahead and explains why long credit stands out in the current environment.
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White papers
The impact of credit risk for pension plans engaging with CDI
Cashflow-driven investing (CDI) has gained significant traction in recent years as pension plans have successfully de-risked and strengthened their balance sheets over the last decade. Increasing numbers of plans are able to allocate significant proportions (potentially all of their assets) to fixed income like assets so that cashflow income closely matches expected liability payment, thus providing a simpler hedge and reducing the complexity of portfolios. Investment products, strategies and asset classes have developed to facilitate this approach.
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White papers
Markets Testing Central Bank Resolve
Despite hawkish comments by Fed officials this week, markets continue to price in a more dovish path for rates. The BoE hiked 50bps and downgraded its economic outlook, calling for a U.K. recession in Q4. Eyes will be on U.S. CPI next week to gauge whether inflation is peaking.
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White papers
The sleeping giant: Unlocking sustainable finance
Many banks are failing to realise their impact potential, thus missing out on commercial opportunity in the real economy
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White papers
Fixed Income Insights (China Edition) - August 2022
Chinese government bond returns were modest in July, compared to their global peers, following concerns over the global economic downturn. YTD Chinese $ high yield credit losses deepened compared to those of US HY, which rallied.
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White papers
Fixed Income Insights - August 2022
Global bond markets were dominated in July by concerns over the severity of the global economic downturn and hopes that central banks front-loading interest rate hikes would mean a quicker end to the tightening cycle. A broad relief rally in global bonds reversed some of the YTD underperformance.
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Podcast
Private Credit: What’s in Store for the Months Ahead?
Co-Heads of Global Private Finance, Adam Wheeler and Ian Fowler, describe how the economic backdrop is impacting the asset class, what assets look better-positioned heading into a potential recession and where opportunities may arise going forward.
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Blog
How much longer will higher rates and a strong USD affect EM sovereign and US HY credit
EM and US high yield credits have come under increasing pressure in the last twelve months, especially in Q2 2022, as hawkish shifts by central banks and growing concerns about the outlook for the global economy have weighed on appetite for “risky” assets generally.
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White papers
Transition To a Net-Zero Carbon Economy: How Insurers Contribute To Green Finance Via Sustainable Bonds
The sustainable bond market recorded another tremendous year of growth in 2021, with €960 bn of bonds issued. This represents an increase of 80% vs 2020. This strong market expansion is being driven by institutional investors, for whom combating climate change and seeking positive social impacts have become strategic challenges.
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White papers
Fixed Income Insights - July 2022
Bond investors were unnerved in the second quarter as major central banks signaled a more aggressive monetary tightening in their fight to prevent inflation from spiralling out of control, making a global recession more likely. Long-dated conventional and inflationlinked bonds have posted the biggest declines. Credit also fell, especially euro high yield bonds.
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White papers
A safe haven in a time of uncertainty
Royal London Asset Management (RLAM) has partnered with Fundrock distribution S.A, who will distribute RLAM’s products and services in the EEA. This follows the United Kingdom’s withdrawal from the European Union and ending of the subsequent transition period, as UK Financial Services firms, including RLAM, can no longer passport their business into the EEA.
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White papers
Credit Factor Investing with Machine Learning techniques
The most common models to assess asset returns are a linear combination of risk factors. We have employed tree-based machine learning algorithms to capture nonlinearities and detect interaction effects among risk factors in the EUR and USD credit space. We have built a nonlinear credit pricing model and compared it to our baseline linear credit pricing model using error metrics on training and testing sets and during different periods.
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Blog
Calm before the storm − can US high yield weather further rate hikes?
Despite tightening financial conditions, US high yield credit spreads have remained at around pre-Covid levels. But can this last? With its latest 0.75% increase in June, the US Federal Reserve is delivering on its overt aggressive approach, having lifted its target for the federal funds rate to a range of 1.5% to 1.75% since March – the same level of rates last seen before the Covid-19 shock in March 2020.
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White papers
Five Reasons Private Assets May Offer Shelter from the Storm
Given the challenges in today’s market, private assets can offer a number of advantages—from an illiquidity premium, to diversification, to protection from rising rates and inflation.
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Video
Private Credit Masterclass
What is private credit, why is it worth consideration today, and how can investors access the market? Alice Foucault and Aaron Gillespie give a 10-minute overview of the market.
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White papers
ESG journey is set to accelerate in credit markets
Last year global sustainable debt issuance hit a record of over $1.4tn, with the overall sustainable debt universe expanding to near $3.4tn. In the first quarter of 2022 this healthy trend halted temporarily, as high energy prices and rising borrowing costs weighed on market trends.
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White papers
The Two-Way Market Persists
In a webinar a few weeks back, my colleagues, Joe Amato and Erik Knutzen, and I sought to size up the market environment of ongoing volatility and selloffs, pressure from the Federal Reserve, and fears about inflation and growth.
