All Fixed Income articles – Page 18
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White papersFive factors for long-term investors considering high yield
Since Covid-19 disrupted markets in early 2020, high yield has been one of the best-performing fixed income sectors. In fact, it has significantly outpaced the Bloomberg US Aggregate Index (and Global Aggregate Index), US corporate bonds, emerging markets bonds and securitised credit — and by a wide margin.
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White papersEurope in focus amidst fiscal boost
“President Trump’s approach to trade and global alliances may be a wake up call for Europe. The region is signalling a clear and a historical shift, which will require target measures to boost growth efficiently.”
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White papersThe direction of long term rates in an era of high debt
Real interest rates have been on a secular decline since the mid-1980s but have corrected sharply higher since the Covid pandemic, higher inflation and the end of central banks’ Quantitative Easing (QE). Now, public debt is much higher and there are new demands for funding (e.g., for defence and net zero ambitions), which should argue for structurally higher long-term interest rates.
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White papersQ1 2025 Emerging Markets Review and Outlook
Emerging markets have entered 2025 navigating a new phase of geopolitical and economic volatility. With the Trump administration’s trade-first agenda introducing fresh uncertainty—and a Fed now facing the prospect of stagflation—EMD investors are weighing both disruption and opportunity.
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White papersTrade Finance: Uncorrelated alpha potential
Trade finance – short-term loans to facilitate physical cross-border transactions – plays a vital role in facilitating global trade flows. It is estimated that 80% of world trade is dependent on some form of financing. This can be attributed to tighter credit conditions for obtaining alternative sources of capital. In this paper, we outline why more investors are turning towards this asset class as a diversifier in their portfolios.
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White papersCorporate Hybrids: What Are They?
A short introduction to a unique and fast-growing asset class.
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White papersDebt divergence: Investors stand at the crossroads
The world is facing a US$250 trillion problem. While government debt is an important tool to generate economic growth and ensure the day-to-day functioning of a country, how long can debt levels rise before the road runs out?
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White papersSwap spreads: analysis, challenges and outlook
Swap spreads, key indicators of liquidity stress and risk aversion, play a crucial role for insurers. Beyond measuring price differentials between sovereign and corporate bonds, they directly influence hedging decisions, asset-liability management (ALM) strategies and insurer returns under Solvency II.
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White papersDon’t be fooled by the headlines, credit still looks good
Despite the headlines, this remains a positive environment for credit.
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White papersFive factors to watch in multi-sector credit
While uncertainty remains high, the current macroeconomic environment has created a supportive backdrop for multi-sector credit, with yields likely to remain elevated as inflation lingers above central bank targets. Looking further out, our data suggest we should continue to expect positive growth and slowly falling inflation.
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White papersExpecting the unexpected with more robust bond portfolios
2025 was widely expected to be a good year for bonds. The US economy seemed to have found a floor, inflation looked to be contained, and interest rates had a long way to fall. The combination of high yields and capital appreciation from falling rates was, if a bit simplistic, a reason to be excited about the outlook for compelling total returns. But 2025 is looking increasingly like it will be anything but simple, writes Olivier De Larouziere.
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White papersEmerging markets private credit: an attractive, alternative approach
With the private credit industry growing at pace, Mihai Florian, EM Debt Senior Portfolio Manager at RBC BlueBay, explains why EM corporates are in a stronger position than their DM peers and why a long, established track record in EM investing is key to understanding this nascent asset class.
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White papersAt a time of rapid global change, what does Asian EMD offer investors?
Once considered a niche of a niche, emerging market debt has come to the fore as a way to access the world’s most dynamic region. Here’s where we see the opportunity
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White papersAlternative Credit: The diversification benefits of bank originated assets
The investment landscape has transformed dramatically over the past decade, and the role of private credit in institutional investor portfolios has moved from a satellite investment to a core portfolio allocation, playing an important role within a new, uncertain macro environment. Not only have institutional investors continued to increase allocations to private credit, they are also actively looking to diversify within this asset class - seeking solutions which address specific portfolio goals, in addition to providing access to idiosyncratic factors and potential for robust risk return profiles.
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White papers5,500 years old & the next big thing – asset-based finance
Private credit encompasses a dizzying array of strategies – from well-understood corporate direct lending to more esoteric music royalties, fund financing, litigation finance, and real estate credit. Direct lending remains the center of gravity. For allocators looking to build out large scale private credit portfolios, where to go after direct lending can be a challenge. We believe asset-based finance (“ABF”) is the answer – a truly scalable opportunity that focuses on income generation and capital preservation.
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White papersPrivate Credit’s Evolution: Stability, Opportunity, and the Road Ahead
Private credit has undergone a transformation in recent years, and as we head into 2025, the opportunities ahead are clearer than ever. At Arrow Global, we manage and service over €110bn in assets, giving us a deep, data- driven understanding of market performance. The landscape today is shaped by a combination of historical pressures and new trends, and investors who recognise these dynamics will be best positioned for success.
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White papersCentral banks on hold as uncertainty mounts
The US Fed kept interest rates unchanged in the 4.25-4.50% range at its March policy meeting. Citing risks around elevated uncertainty from trade policies, the Fed prefers to wait and see given that the uncertainty is “remarkably high”.
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White papersWill economic uncertainty knock the Fed off course?
The US Federal Reserve (Fed), once the primary driver of markets, has taken a back seat this year to government actions and politics. So far, it’s been a bumpy ride.
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WebinarFixed income investment playbook for 2025
Potential policy changes from the new US administration have raised uncertainty in the outlook for bond markets. Watch two of our senior fixed income portfolio managers, Pramod Atluri and Damien McCann, make sense of the rapidly shifting landscape.
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White papersUnlocking the potential of European Leveraged Loans
We believe that in 2025 the European leveraged loan market will broaden its appeal to investors as a significant asset class to consider. While it has been well established in the US, it has grown significantly in recent years in Europe, with its market size currently close to that of the European high yield bond market.
