Fixed Income – Page 2
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White papersPolitics, Deficits and the Debt Limit
We firmly believe that Congress will ultimately raise the debt limit, but it’s worth remembering that political drama affects markets.
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High yield bonds vs. leveraged bank loans: Is now the time to rotate?
Over the last two years, leveraged U.S. bank loans (“loans”) have outperformed their high yield bond counterparts; however, we believe this trend may be coming to an end. The relative outperformance of loans during this period was primarily a function of duration, or more notably in 2022, the lack of duration.
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Climate Transition Credit at Allspring
Investors can pursue both their climate objectives and financial goals through their bond allocations. In this blog post, we outline the opportunity in climate transition credit.
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Not in it for the duration
Duration is a measure of the sensitivity of a bond or fixed income portfolio’s price to changes in interest rates. A bond with a 2-year duration will move 2% in price if interest rates move up or down by 1%, a bond with a 5-year duration will move 5% in price if interest rates move up or down by 1%, a 10-year duration bond 10%, a 20-year duration bond 20% and so on. Hence more duration equals more price risk.
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Non-Investment Grade Defaults: Up From the Lows, but Contained
With defaults rising off of all-time lows, but likely remaining well below recession norms, we remain constructive on high yield and non-investment grade credit.
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Why Does Private Credit Remain a Compelling Investment Opportunity vs High Yield Bonds in the Current Economic Environment?
As the U.S and Europe transition into a new era of tighter monetary policy, higher interest rates have had dramatic consequences across virtually all asset classes. Bonds were amongst the hardest hit given the interest rate risk inherent with any fixed payment security.
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GSS bonds: The sustainable bond market of cities and regions
The Franklin Templeton Fixed Income team believe investors with an appetite for sustainable impact should focus their attention on the market of urban GSS bonds.
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Emerging Markets Debt: will 2023’s bright start last the course?
Maybe it’s an optimistic time of the year or maybe it’s just a good investment case? Whatever you identify as the driver, there is no denying that 2023 has begun in extraordinary fashion for emerging markets debt (EMD).
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Insurance Asset Allocation in the New Regime
After a year in which fixed income yields and capital market assumptions adjusted dramatically to a new regime, we believe it’s an opportune time to re-think insurance asset allocation.
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Winter is here
Six months ago, I was cautiously concerned about the impending ‘Winter of Doom’ descending on Europe. And winter is finally here now. Or is it?
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Italy: where prudence meets potential
Italy’s large dependence on Russian gas and other commodity imports left it vulnerable to the war in Ukraine.
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China’s Reopening Bodes Well for Asian Fixed-Income Markets
Markets have responded warmly to China’s easing of its zero-COVID policy, although it’s not clear yet how quickly or smoothly the country’s economy will recover. While some bumps in the road are likely, we expect China’s reopening could lead to further gains in Asian credit and currencies in 2023.
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Macro Perspectives: Recession, inflation and duration considerations
Are markets correctly pricing inflation? What flavor of recession are our economists anticipating? What roles will quality and duration play in 2023 as investors run towards fixed income? Our economists discuss key questions facing investors today in our latest Macro Perspectives.
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Can inflation end without a meaningful increase in unemployment?
In the latest instalment of Simply put, where we make macro calls with a multi-asset perspective, we ask whether a shared belief in the prospect of a soft-landing is enough to bring it about.
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European leveraged loans: Defensive against rising rates and uncertainty?
2022 represented the end of the more than decade-long bull run and the impact for European loans was a dislocation to yields of c.10%. For long-term investors, we believe this provides an interesting investment opportunity for a senior secured defensive asset class with typically higher risk-adjusted returns than comparable credit risk asset classes.
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Extinguishing the flame: Has inflation peaked?
Despite further hikes, markets are factoring in a less hawkish approach from central banks.
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Where to buy bonds in the great debt eradication
I know what you’re thinking, a fixed income manager says “buy bonds”. What a surprise. But actually, I think the opposite. I’m not saying “now is the time to buy bonds.” Well, not all bonds.
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A White Knight for Green Investing
CFA Institute – with input from Natixis Investment Managers – launches global standards to make ESG investing more transparent
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What is a CLO?
CLOs provide an efficient, scalable way of investing in floating-rate loans while offering structural protection that has historically performed well through multiple credit cycles.
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Firmer foundations for China’s property market in 2023
The Chinese property sector has been in the headlines over the past year, and not for the right reasons.
