All Fixed Income articles – Page 54
-
White papersJust What Will Break First?
Tighter policy will eventually tame prices, but it’s still hard to see a U.S. recession anytime soon.
-
White papersThe Rising Costs of a Drawn-Out War
Financial markets may not ebb and flow with major developments on the battlefield anymore, but we believe they do still need to come to terms with the war’s lasting inflationary impact.
-
White papersEMD as a Hedge Against Inflation
Inflation concerns have caused investors to search for income with lower duration, and we believe Asia high yield delivers on this front.
-
White papersEmerging Markets in a World of Higher Long-Term U.S. Inflation
In an effort to stave off disinflationary impulses in the economy, the Federal Reserve’s Flexible Average Inflation Targeting (FAIT) framework announced in 2020 was one of the most important shifts in monetary policy strategy in years.
-
White papersPrivate debt attractive amid public asset volatility, increased inflation and rising interest rates
Public asset volatility, increased inflation concerns and rising interest rates are driving more interest in private debt than ever before, finds a recent survey published by The Lead Left, founded by Randy Schwimmer, co-head of senior lending at Churchill Asset Management.
-
PodcastPrivate equity has put sustainability firmly in its sights
Many believe that private equity (PE) is particularly well placed to embrace ESG and sustainability given the scale and scope of the industry’s investments and the benefits of a direct ownership model. Together with various initiatives aimed at establishing common standards for ESG integration, PE is sharpening its focus on climate-change resilience across portfolio companies in particular. While this inherently bodes well for other stakeholders like lenders, there is still a role for engagement with borrowers to ensure they demonstrate progress.
-
White papersThe inflation psychology is kicking in
After a decade of central banks struggling to bring inflation up to target, the start of 2022 has been characterised by a shift in the inflationary environment worldwide. US inflation is at its highest level in over 40 years, with other DM trailing close behind.
-
Research ReportShould investors diversify their portfolios with green bonds?
As calls for action to mitigate global warming grow more urgent, the importance of ESG bond markets as a potential source of climate capital has grown substantially in recent years. Yet for the market to evolve into a strategic asset class, investors need to be convinced that it represents a viable alternative to conventional bonds.
-
Research ReportWhy demand for ESG bonds is increasing among emerging market investors?
ESG integration in emerging market bonds has accelerated in 2021. At around USD 300 billion, ESG-labelled bonds represent 1 per cent of the market (vs 1.5 per cent for developed markets). Since the end of 2012, over half of ESG-labelled emerging market bonds have been issued by Chinese sovereign and corporate borrowers. Issuers from Chile, India, and Brazil are also well represented.
-
Research ReportThe ESG bond market is on the verge of reaching new heights
With environmental, social and governance (ESG) issues dominating the international policy agenda — and as investor demand for new ESG financial products and services continues to grow — global debt markets, and by extension fixed income portfolios, are about to undergo a radical transformation. The ESG debt universe is expanding rapidly, not only in size but also in terms of the variety of instruments it contains and the range of activities it finances.
-
PodcastThe Investment Podcast: Opening routes of exposure to consumer assets
Traditionally an area dominated by banks, consumer lending is a well-established asset class, but what’s new is that asset owners can now get access to these assets. In this episode, Jerome Henrion guides us through the diversification benefits, inflationary advantages in the current environment, making sense of a heavily data-intensive asset class with more than a billion data points and the key differences between Europe and the US.
-
White papersBonne Récupération: The ECB Moves Gradually, Keeps its Options Open
As expected, the ECB largely confirmed its policy normalisation journey in the coming months, including the tapering of asset purchases over the course of the second quarter. That said, recent data suggest a somewhat accelerated pace of tapering, with the Governing Council now viewing asset purchases as likely to conclude in the third quarter of this year.
-
White papersEM Corporate Bonds in 2022: How to Find Truffles in the Mud
Tighter monetary conditions have raised bond yields around the world since the start of the year. Ten-year US Treasury yields rose 80 basis points (bps) in the first quarter, global investment-grade yields 83 bps, and yields on high-yield bonds rose 136 bps.
-
White papersFT Fixed Income Central Bank Watch: Race to the top
The Franklin Templeton Fixed Income Central Bank Watch is a qualitative assessment of the central banks for the Group of Ten nations plus China and South Korea.
-
White papersRethinking the Credit Liquidity Continuum
As private credit markets have expanded, matured and democratized, eligible investors can now, in a cost-effective and operationally efficient manner, combine liquid and less-liquid credit assets in one portfolio. This allows investors to increase yield profile and potentially reduce volatility and correlation.
-
White papersCLOs Well-Positioned Amid Rising Rates, Heightened Uncertainty
In the context of a thin new issue pipeline, secondary market CLOs look more interesting, on balance, relative to new issues.
-
White papersSDG Engagement High Yield Credit: 2021 Annual Report
Our 2021 Annual Report outlines how the SDG Engagement High Yield Credit strategy delivered on its colinear objectives: strong financial performance for investors, and future, positive social and environmental impact contributing to achieving the United Nations’ Sustainable Development Goals.
-
White papersHigh Yield: A Strong Case for Floating Rate
While the negative shocks of late have impacted high yield markets, the asset class remains well-positioned overall—particularly loans, which can offer a degree of protection in a rising-rate environment.
-
White papersEM Debt: Finding Fundamental Value in a Shifting Landscape
The current environment is challenging, but much like in the past, opportunities are beginning to arise across the EM debt landscape.
-
White papersHow institutional investors can make a social impact in portfolios
The momentum around net zero investing has helped focus the minds of institutional investors on ways to tackle climate change and how to respond to the changing policy landscape. This has led to fundamental change in how pension funds and insurers view their portfolios over the longer term – leading to the steady integration of environmental risks and opportunities.
