All Fixed Income articles – Page 90
-
White papersGlobal High Yield celebrates its 10-year anniversary
Our Global High Yield capability is 10 years old. Since the capability’s inception a decade ago, the global high-yield market has transformed beyond recognition. Not only has it doubled in size, but the number of issuers – and the average size of an issue – have also soared.
-
White papersInvestment grade credit: how cheap are credit spreads?
From the middle of February to late March was one of the worst periods of performance for risk markets in general and for investment grade (IG) credit in particular. This was in response to the Covid-19 crisis and was marked by both the speed and extent of the spread widening.
-
White papersTo Trade or Not to Trade? That is the Question…
Despite rising tensions between the U.S. and China, the U.S. has signaled they won’t tear up the trade deal, yet. Inflation may be impacted by weaker demand and lower oil prices. The ECB weighs what to do next after Germany ruled its QE program violated its constitution.
-
White papersAre ECB Bond Purchases Legal?
Investors breathed a sigh of relief after the German Constitutional Court found the ECB has not been engaged in monetary financing, but the details sent ripples through the markets as the ruling raised questions about potential constraints on European monetary policy.
-
White papersNot created equal: Surveying investments in non-investment grade U.S. corporate
Institutional investors searching for yield and current income opportunities have increased their allocations to non-investment grade corporate bonds and loans. The case for investing in these assets is clear with the 10-year Treasury under 3% and historically low rates across the yield curve. Non-investment grade U.S. corporate debt has historically produced yields in the 6-10% range or greater.
-
White papersEmergency Fiscal Programs: No Choice But To Increase The (Monetized) Deficits
The large fiscal packages announced by governments to counter the virus crisis aim, so far, at stabilization more than stimulus.
In addition to funding the emergency response to the virus situation itself, these packages intend to prevent a worsening of the crisis through the financial and household income channels. -
White papersInvesting today for a better tomorrow
Bonds to help build solar energy farms or finance water reclamation projects… In today’s world, green business is good business. Why not invest where your money can make a positive impact on society and the environment?
-
White papersRecalibrating the rulebook: 360°, Q2 2020
What is our current view of fixed-income markets? And where do we see the best relative value? In our latest edition of 360°, Andrew ‘Jacko’ Jackson, Head of Fixed Income, and his team of specialist investors considers the areas that have the potential to deliver superior risk-adjusted returns.
-
White papersCredit: Industry Insights
As we navigate the impacts of the coronavirus pandemic on the fixed-income market, we have launched a weekly video to highlight the latest industry insights from our credit analysts.
-
White papersAdventures on the Planet of the Apes: Navigating the Low-Rate Environment
Artificially low rates are causing multiple distortions and pockets of heightened risks—and while the current environment may be unprecedented, it need not be incomprehensible. Investors who understand the dynamics driving low rates may be positioned to take advantage of promising opportunities.
-
White papersMarket weekly – Fixed income: Deflation, not inflation, is the main risk now
After a rollercoaster ride in April, senior investment strategist Daniel Morris and Dominick DeAlto, chief investment officer fixed income, discuss what will matter next for developed bond markets.
-
White papersThe outlook for eurozone inflation-linked bonds
A V-shape economic recovery in the eurozone looks unlikely, while member states continue their marathon search for a compromise on how to fund the reconstruction. The poor outlook for the economy and inflation, and the ECB’s asset purchases, should keep eurozone government bond yields low and cap the risk premiums on ‘peripheral’ bonds.
-
White papersCanary in the Coal Mine
The credit market has lagged while equities have rallied—is it warning investors not to get carried away?
-
White papersInvesting today for a better tomorrow - Euro Green & Sustainable Bond
Green business is good business. Global green bond issuance climbed by nearly 50% last year (Climate Bond Initiative, 2020) and it is set to continue its growth as investors’ demand for more sustainable investments with a real impact on society is increasing.
-
White papersInvestment View - Sudden stop, permanent scars
Six months ago our quarterly ‘Investment Views’ (Graph 1) lamented about the spread of the negative yield disease. In 2020 a far more dangerous and lethal epidemic has hit society, the economy and financial markets: the coronavirus. As we go to press, more than 1.2 million cases have been recorded globally (a number likely grossly under-estimated, given the under-testing), for a death toll of 65k.
-
White papersA Shocking (But Complicated) Employment Report Next Friday
Unemployment will clearly skyrocket, yet the April Employment Report next Friday won’t tell the full story, and the impacts will differ by state and industry.
-
White papersRoads to recovery from the coronavirus crisis
Will the global economic and market recoveries chart a V, U, W or swoosh-shaped recovery from the coronavirus crisis – or take a completely different course?
-
White papersThe TALF 2.0 Opportunity in Asset Backed Securities
During the 2008 – 10 financial crisis, the Federal Reserve’s Term Asset Backed Securities Loan Facility (TALF) enabled double-digit returns from high-rated ABS. What are the prospects under TALF 2.0, part of the Fed’s COVID-19 response?
-
White papersCovid-19 Fixed income - Public credit - the end of beginning
Credit markets have continued to develop in recent weeks as participants digest events and various official intervention strategies, and consider the ramifications for taking credit risk in the future.
-
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.
