Fixed Income – Page 32
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White papersFixed Income: High Yield is not a meme stock
Brandywine Global: With defaults so low and fundamentals, such as interest coverage and leverage, still strong, we believe the case for high yield is even more compelling today.
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White papersThe 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.
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White papersCross Asset Investment Strategy - June 2022
The repricing of a more aggressive Fed stance has been brutal as the 10Y UST yield temporarily reached the 3% threshold, falling close to 2.75% recently on economic growth concerns. We think investors should move towards neutrality on duration in the US and Europe, whereas in credit, they should focus on quality and stay cautious on higher-risk segments in Europe.
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White papersThe Path From the Peak
With inflation still above-trend, prices rising for necessities, central banks tightening policy, and fallout from China’s zero-COVID policy, we will watch for a sharp slowdown in growth over the 12–18 month outlook.
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White papersThe myth of the fiscal free lunch: beware of the trap. An investor’s viewpoint
The idea that there is a comfortable degree of budgetary room for more active fiscal policy goes hand-in-hand with the assumption that a sustained bond correction (higher safe real interest rate) is not only unjustified based on fundamentals, but is also impossible. This comes as no surprise. On average throughout modern history, safe real interest rates have been lower than the GDP growth rate, making it easier to finance public deficits.
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White papersShifts & Narratives #19 - The fiscal illusion: no free lunch for investors
The conversation regarding whether there is room for more aggressive fiscal policy is a hot political topic today. In the US, the debate is likely to become even more inflamed as we approach the midterm elections. In fact, these are at risk of becoming an evaluation of President Biden’s policies in light of the excessive fiscal spending carried out in response to the Covid pandemic (and its subsequent impact on the economy).
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White papersSmoothing Long-Term ESG Transition
At Neuberger Berman, we believe that attention to material environmental, social and governance (ESG) factors will be crucial to managing investment portfolios over time. The Non-Investment Grade team closely integrates ESG factors into fundamental credit research, engaging rigorously with issuers to ensure that associated risks and opportunities are taken into account in business strategy and the allocation of capital.
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White papersThe Case for Investing in Senior Secured Bonds
From capital structure seniority and high historical recovery rates, to lower interest rate sensitivity and compelling yields, global senior secured bonds offer a number of potential advantages.
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White papersOn my mind: The Fed has kept monetary policy too loose for too long
Inflation at 40-year highs poses the toughest of policy challenges. Yet America’s Federal Reserve (Fed) still hopes to meet it with an easy solution: bring the policy rate close to 3%, and as adverse supply shocks fade inflation will revert to the Fed’s 2% target. No need for a sharp monetary tightening à la Paul Volcker.
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White papersMarket snapshot: Recession fears grow as central banks step up inflation fight
The Fed cut rates by half a percentage point for the first time in two decades. The yield on US 10-year treasuries edged above 3% this week as traders reacted to tightening monetary policy and ongoing uncertainty.
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White papersMunicipal bonds: an attractive entry point
Municipal bonds have had a rocky start to 2022, but credit quality remains strong. With aggressive rate increases and a shrinking balance sheet, the U.S. Federal Reserve is signaling a quicker move toward a neutral policy rate.
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White papersInflation: Higher but Not Forever
High inflation and the consequences of attempts to curb it are a top concern for today’s investors. We believe that, by hiking rates, policymakers can eventually slow demand enough to subdue price pressures, even in an environment of constrained supply. But this process takes time.
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White papersFour Key Findings about the U.S. Yield Curve
The U.S. yield curve attracts a great deal of attention when it is close to inverting given its historical connection with U.S. recessions as well as sharp selloffs in equity and credit markets.
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White papersNavigating an inflationary environment in US and global equities
Forty years … That’s how long it has been since the Great Inflation, which lasted from 1965 to 1982 and saw inflation in the US climb as high as 13.5%. According to Michael Bryan of the Federal Reserve Bank of Atlanta, it was the “defining macroeconomic event of the second half of the twentieth century … there were four economic recessions, two severe energy shortages, and the unprecedented implementation of wage and price controls”.
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White papersClimate Transition risk in Fixed Income Insurance Investment
For insurance portfolios, for reducing the carbon footprint given the limited turnover possibilities, we adopt a gradial asset rotation approach, exiting from poor ESG-rated assets gradually while pushing for change in activist approach via our engagement activities. From an insurance investment standpoint, the expectations in terms of transition risk will most probably result in heightened pressure on prices of high carbon footprint assets.
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White papersStaying Buoyant with Floating-Rate Securitized Products
Investors flock to floating-rate assets during periods of rising interest rates for two primary reasons: they stand to benefit from increasing coupon payments as policy rates rise, and the assets’ minimal duration risk provides insulation during periods of volatility in long-duration assets. Judging by the $53 billion of inflows since the start of 2021, investors are often steered towards leveraged loans when it comes to floating-rate assets.
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White papersRelative value in EM local markets
Emerging market (EM) core inflation has risen by less than US inflation, in part due to weak economic conditions within EM and proactive EM central banks. The acceleration of interest rate hikes by EM central banks has driven up real interest rate differentials between EM and the US, making ...
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White papersManaging Challenges in US Equity and Fixed Income Markets Today
US equity and fixed income markets are facing new challenges. Our Ed Perks shares his latest outlook and investment opportunities across asset classes.
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White papersA word with our expert on green bonds
‘The green bond universe is an attractive alternative to conventional debt’
