All Credit articles
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White papersInvestment Perspectives - Incorporating ESG trends into investment-grade credit strategies
Green bond issuance has reached record levels and include an expansive spectrum of issuers, intended uses and geographies. Many ESG-related financing decisions are made at the local and corporate levels, empowering security-selection-driven credit strategies. ESG integration in fixed-income portfolios has been helped by new tools that allow ...
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White papers
Private Credit: Where We’ve Been, Where We’re Going
Industry veterans Ian Fowler and Adam Wheeler describe the dramatic evolution of private credit markets and explain why quality of earnings and varied definitions of ‘senior’ risk could be at the center of the next credit market storm.
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White papers
Sterling investment grade set to outperform US/Euro bonds
Following the decisive Conservative win in the recent UK election, we expect sterling investment grade to outperform its US dollar and euro counterparts in 2020 and carry to drive returns. With reduced political uncertainty, economic and fundamental credit considerations will once again play a dominant role in framing returns for the sector. We believe certain areas such as utilities and real estate will re-rate and strongly outperform.
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White papers
A supportive environment for investment grade credit
The macro environment we face is one of low economic growth, low inflation, and loose monetary policy. That can be considered something of a sweet spot for investment grade credit. Corporate earnings are strong enough for the moderate leverage in the asset class, and investors’ search for high-quality yield supports bond prices.
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White papers
Global Economy: Why I’m More Positive on Global Growth
Three key developments in recent weeks have improved investor confidence, which should boost growth-intensive risk assets and help to keep credit spreads tight.
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White papers
Seeking protection in mispriced miners
The copper price – a gauge for the wellbeing of the global economy – has defied supply disruptions and remained broadly flat for the past year. Despite this, the credit spreads of several large mining firms are trading at their lowest levels in 12 months, indicating subdued risk. We think that credit markets have failed to account for several risks that miners face – from a weak macroeconomic outlook to environmental, social and governance issues – and we have sought defensive positions within the sector.
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White papers
Amid Rising ‘Mequity’ Risk, Boring Can Be Beautiful
In both the U.S. and Europe, there is significant pressure both at the top and bottom ends of the middle market. As a result, we’re seeing potentially attractive value today in the more traditional, true middle market.
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White papers
Harnessing the illiquidity premium
There is a general consensus that an illiquidity premium exists and the benefits of investing in illiquid credit are well understood. Yet illiquidity constraints create risks and restrict the ability of investors to react quickly to market movements. In order to harness the illiquidity premium while remaining mindful of the inherent risks, investors need to challenge assumptions about current liquidity conditions and maintain flexibility and an open mind.
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White papers
Solving for 2020; the key themes we anticipate will guide investment decisions in 2020
The heads of our investment platforms identified the key themes they anticipate will guide investment decisions in 2020.
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White papers
The growing opportunity in European consumer credit
European consumer credit is one of the largest and most diverse loan asset classes in Europe. It has also had resilient performance through economic cycles. Historically, these assets have remained confined to banks’ balance sheets, but structural change in the banking landscape in Europe is opening up a sector previously inaccessible to institutional investors.
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White papers
Lazard Rathmore: Letter from the Manager
Delivering Equity-Like Returns with Bond-Like Risk for over a Decade
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White papers
360 Webinar: Hermes Flexible Credit
Throughout this webinar series, the Hermes Fixed Income team will discuss key performance drivers of our portfolios, and provide their assessments of risks and opportunities across the credit spectrum.
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White papers
Credit and sustainability: ignorance is risk
The need for companies to adapt to long-term structural trends is not new. They have been doing it for centuries. However, today the challenges created by sustainability are more urgent than ever. In particular, sustainability-driven change is unparalleled in scale and speed.
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White papers
Our Q4 Outlook
Trade disputes and geopolitical frictions have become key drivers of the economy and markets. Recent geopolitical volatility illustrates this.
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White papers
Q3 2019 - Emerging Markets Debt Monitor
Emerging markets debt (EMD) performance was negative in Q3. The local sovereign index was down slightly due to the strong USD and negative sentiment around the Argentinean election. External debt indices performed better, though this was driven entirely by the decline in UST yields. EM Equities had a weak quarter due to concerns around growth and trade.
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White papers
360° – Fixed Income report, Q4 2019
Distortions in credit markets mean that opportunities for open-minded investors lie beneath the surface, but they are few and far between. An inquisitive, active approach is needed to discover pockets of value and navigate storm clouds that linger on the horizon.
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White papers
A High-Income Survival Guide for Late-Cycle Markets
It’s easy to get spooked in late-cycle markets. But we think there’s a way to de-risk your portfolio and still generate a decent level of income—no magic spells necessary.
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White papers
Investment Grade: Stable Fundamentals with Hints of Wear & Tear
IG fundamentals held up relatively well in Q3, despite dampened sentiment and growing macro uncertainty. Spreads were unchanged, but may move wider before year-end.
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White papers
Structured Credit: Engaging Risk Tactics
Deal flow remained steady in Q3, keeping primary market spreads range-bound. Against a backdrop of low global interest rates, we have seen increasing investor interest in European CLOs.
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White papers
High Yield: Poised to Capture Relative Value
Despite mounting uncertainty in the broader markets, high yield delivered broadly positive returns in Q3. As we continue to move through the late stages of a prolonged cycle, credit selection will be critical.
