Fixed Income – Page 64
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White papersManaging Risk Models in the Coronavirus Crisis
The spread of the COVID-19 virus has blindsided conventional risk models. By understanding what went wrong, investors can develop a more forward-looking approach to risk management that considers multiple scenarios for a highly uncertain market environment.
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White papersWhat Plunging Oil Prices Mean for Energy Bonds
On April 20, the price of oil skidded into negative territory for the first time in history, with the May futures contract on West Texas Intermediate (WTI) crude hitting a low of –US$37.63 per barrel before recovering to positive levels.
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White papersRevisiting The Global High Yield Outlook In The Wake Of The Covid-19 Pandemic
Global HY markets sold off aggressively between February and March in response to the COVID-19 outbreak, the oil price war and the liquidity freeze in some markets. An analysis of past peak-and-trough episodes in the US HY market shows that on most occasions investors have enjoyed positive market returns just one year after the peak. Three years past such a peak, market returns have proven positive in all six occurrences since 2000.
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White papersPlotting the path to recovery: V, L or Nike swoosh?
The market sell-off and spike in volatility have left investors reeling. While history doesn’t always repeat itself, it often rhymes and a closer look at the data indicates there are lessons we can learn from previous drawdowns.
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White papersOpportunity in Credit Dislocation
Michael Holmberg and John Humphrey provide an update on the credit market dislocations resulting from the crisis, what is causing concern in the market and how to find the opportunities that are emerging.
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White papersTaking the Bite Out of High Yield’s Tail Risk
A new buyer has arrived on the scene of U.S. high yield markets, and it happens to be the biggest buyer of them all: the U.S. Federal Reserve.
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White papersWhy farmland now? Amidst unprecedented market volatility, a durable and consistent investment with compelling upside
Considered a safe haven investment, farmland has proven to be a reliable store of value through times of economic tumult – exhibiting durable valuations and attractive levels of income, both of which are uncorrelated to competing assets.
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White papersECB QE Monitor - March 2020
March 9 2015 (decision to purchase €60 bn of assets per month until Sept. 2016), December 3 2015 (decision to extend the QE it until March 2017), March 10 2016 (decision to increase monthly purchases from €60 bn to €80 bn from April 2016) December 8 2016 (decision to ...
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White papersSignificant risk transfer (SRT) credit opportunities
Apart from very specific parts of the SRT market, such as social housing and capital call facilities, most SRT deals are exposed to corporate or consumer risk. We expect defaults to spike in the short term in most transactions, with greater variability in corporate deals than in consumer deals.
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White papersWhen coupons are king: the case for global high-yield credit
With markets in freefall, high-yield bonds have been particularly affected and credit spreads recently rose above 1,000bps for the first time since the 2008 financial crisis. But in risk lies opportunity and the market rout means that high yield is trading at attractive valuations. At a time when listed companies are cutting dividends, we believe that high yield’s income-generating qualities means that it has the potential to deliver superior risk-adjusted returns earlier on in the market’s recovery.
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White papersCredit Risk Sensitivity To Carbon Price
In order to meet the objectives set by the Paris Climate Agreement, global greenhouse gas emissions must be drastically reduced. One way to achieve this goal is to set an effective carbon price. Although beneficial for the climate, a rapid increase in this price can have a significant financial impact on corporate firms.
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White papersCovid-19 and European asset-backed securities
Stress testing demonstrates resilience of asset class
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White papersA Tale of Two Markets
March was the worst of times for financial markets, and yet the best of times for primary issuance of investment grade credit.
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White papersInvestment Grade Credit Markets Make an About-Face
As investment grade markets pivot sharply, with spreads reaching their widest level in over a decade, investors turn disproportionately toward quality and liquidity.
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White papersHigh Yield: Finding Value in a Landscape Rife with Risk
Concerns surrounding COVID-19, lower oil prices and a global recession have weighed heavily on markets—including global high yield bonds and leveraged loans. While value opportunities are emerging, the landscape is punctuated with risks that must be carefully navigated.
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White papersChina Recovers
China was the first economy to be struck down by COVID-19, but that means it is the first to recover—and its onshore bond and equity markets may be a good place to get exposure.
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White papersInvestment Grade Credit: Open For Business
The new-issue market remains available to investment-grade corporate credit, thanks to the swift and sizable monetary support from the Federal Reserve.
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White papersMuni bond myths and realities: Bonds are trading, leverage isn’t bad, and widespread defaults don’t look likely
Following a long, unprecedented period of stability and price appreciation, municipal bond funds experienced equally unprecedented volatility and outflows in early March as the COVID-19 pandemic, broader market selloff and economic uncertainty led investors to hit the panic button.
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White papersEMD Market Update
Gorky Urquieta, Co-Head of the Neuberger Berman Emerging Markets Debt Team, discusses the factors that contributed to the sell-off of EMD assets over the past month and how the team is positioning portfolios in this volatile market environment
