All Credit articles – Page 20
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White papersIlliquidity: understanding the premium in fixed-income markets
Years of low interest rates have prompted fixed-income investors to look beyond traditional sources of yield and consider whether illiquid assets can boost returns. But while this illiquidity premium is widely discussed and increasingly sought, it has been inadequately measured and investors lack an understanding of how it operates in different conditions.
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White papersDigital Innovations—Pinpointing Fixed Income Credit Risks
Distinguishing which risks are more likely to pay in Fixed Income Markets versus those that probably won’t.
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White papersNuveen knows income - Securitized bonds: investment potential in a complex market
We think securitized credit may offer attractive risk-adjusted returns, but this complex market requires experienced, in‑depth analysis
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White papersDistressed Debt: Seeking Opportunity in Choppy Waters
Investors are increasingly looking to distressed debt as the credit cycle matures. But with a competitive landscape and significant growth in private credit and European high yield, this cycle could look different than those of the past. Stuart Mathieson, Head of Barings’ Global Special Situations group, and Bryan High, Co-Portfolio Manager of the strategy, discuss how the macro environment is impacting their outlook, and where they’re seeing opportunities today.
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White papersAsset Class Return Forecasts - Q3 - 2019
We expect economic growth to evolve around potential for most developed economies in 2020. It could subsequently decrease below potential in 2021 driven by a deteriorating cyclical environment and still anaemic global trade. Nevertheless, growth should stay in positive territory.
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White papersAre Distressed Small Banks Putting China’s Banking System at Risk?
It’s been 20 years since a Chinese bank failed. But recent bailouts of three regional lenders have raised concerns about systemic problems in China’s financial sector. While risks have grown for China’s smaller banks, we believe that the Chinese banking system remains robust.
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White papers360° – Fixed Income report, Q3 2019
The protracted injection of liquidity into the fixed-income space over the past decade has resulted in more than $14tn-worth of negative-yielding debt. In today’s upside-down world, a flexible approach will help credit investors keep an active watch and avoid potential pitfalls.
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White papersDistressed Debt: How This Cycle May Be Different
Barings’ Stuart Mathieson and Bryan High discuss the outlook and competitive landscape for distressed debt and consider the implications of the significant growth in private credit and European high yield since the last cycle.
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White papersEmerging Markets Investment Insight - Local bond benchmarks: Yield tilts and funding diversification
Low yields in developed fixed income markets combined with rising global issuance has made investments in local currency emerging markets (EM) bonds popular. In prior publications, we wrote about using factor decomposition to synthetically re- create exposure to the EM cash bonds through duration, currency, and credit derivative instruments. Extending this research, we investigate whether these factors can be used to enhance benchmark performance.Local bond benchmarks: Yield tilts and funding diversification
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White papersMidyear Bond Outlook: Making Sense of Conflicting Signals
The first half of 2019 was kind to financial markets. Will the good times keep on rolling? In our view, that will depend on whether loosening monetary policy is still an effective way to boost growth.
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White papersFixed Income Charts And Views
A slowdown in global growth, with subdued inflation and dovish central banks (CB) committed to avoiding further economic deceleration, is a trend that, in our view, should remain favourable for bond investors. On one side, this should limit the upside in core bond yields and, on the other, support the credit market, although we are aware that the spread compression in this first part of the year has been very strong and that an increasingly selective approach will be crucial to exploiting pockets of value.
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White papersHedge Fund Strategy Outlook Q3 2019
Changing rate environment, heterogeneity within Europe, and a combination of broad macro factors and idiosyncratic situations should create opportunities.
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White papersBack to basics: a contrarian look at cyclicals in credit markets
The US bull run is the country’s longest on record. But we are in the latter stage of the global macroeconomic cycle and warning lights are flashing. We remain focused on corporate fundamentals, asking which high-quality cyclicals could successfully weather a slowdown.
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White papersFixed Income: Upending the Conventional Approach
The search for yield trudges on amid trade and tariff clashes, and a credit cycle that continues to surprise in its longevity. In this Q&A, Michael Freno, Head of Global Markets, shares his views on where value can still be found and how investors can benefit from looking beyond traditional indexes in high yield, investment grade credit and emerging markets debt.
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White papersOpportunities in Emerging Markets Debt
We believe that emerging markets (EM) offer an enormous range of investment opportunities. This burgeoning marketplace includes more than 75 countries, with sovereign ratings from AAA to default. This country mix includes extremely wealthy countries, to some of the world’s poorest.
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White papersStrategic Relative Value Q2 2019
A quarterly look at how macro events are driving relative value around the globe.
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White papersHermes Unconstrained Credit celebrates one-year anniversary
On 29 May 2018, we launched our Unconstrained Credit Fund. It aims to maximise long-term total returns by combining unconstrained, high-conviction credit selection with a hedge against adverse market conditions. One year on from its launch, we ask: how has Hermes Unconstrained Credit performed?
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White papersPricing ESG risk in sovereign credit
Building on our studies showing a strong relationship between the environmental, social and governance performance of companies and their credit spreads, we have partnered with researcher Beyond Ratings to determine whether similar connections exist in the sovereign credit market.
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