All Fixed Income articles – Page 90
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White papersFlexible credit: the upside of downside protection
Flexibility always has a place, but its capacity to provide downside protection makes it particularly important given the advanced age of the credit cycle. In the fourth instalment of a five-part series, we explain why credit investors cannot afford to just rely on rates and diversification for protection. We also consider the robust suite of tools needed to preserve capital during market sell-offs and help protect our ability to take risk when opportunities are greatest.
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White papersSouth Africa Inflation
South African inflation came out higher in January: 4.5% yoy compared to 4% in December but is in the middle of the inflation target (3-6%) of the South African Central Bank (SARB). This acceleration in inflation is mainly explained by a sharp rise in transport prices linked to base effects of fuel prices (+ 13.7% in January against 2.4% the previous month).
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White papersFebruary 2020 - European loan market - review and outlook
European loans returned 5.0% in euro terms in 2019, making another strong year and the asset class’s best performance in 2016. In tandem with wider markets, the year was not without its wobbles, most markedly in October, but all quarters delivered positive returns and loans found their footing in the fourth quarter, as economic and political concerns dissipated and as progress towards a US-China trade deals was made, just as a decisive result in the UK elections inspired confidence in a clearer position on Brexit.
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White papersGlobal high yield outlook: Be confident, but not complacent
Last year was a strong year for global bond markets, which were supported by the accommodative stance of the main central banks and strong investor demand. US, European and EM high yield (HY) bonds all returned more than 14% swapped into US dollars. The performance was led by the higher-quality segments of the market, such as BB-rated bonds, as well as the strong performance of CCC bonds in Europe. This was due to the search for yield across credit products, helped by positive risk sentiment.
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White papersFixed-income investing in unprecedented times
In a live recording from our Fixed Income Forum 2020, we assess the macroeconomic and market drivers for this asset class – and conclude that we are in unchartered territory.
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White papersAre CLOs Unfairly Vilified?
Despite the late-cycle environment, we believe the recent negative headlines on CLOs are somewhat overstated, and do little justice to the many benefits of the asset class—which has delivered impressive risk-adjusted returns and low defaults over time.
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White papersChecking in on BBBs
Improved credit conditions are reflected in spreads, but volatility may create opportunities.
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White papersSeeking riches with the tide far out: 360°, Q1 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.
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White papersAmplified: Fixed income markets in the new decade
In this episode of Amplified, Eoin Murray, Head of Investment and Andrey Kuznetsov, Senior Credit Portfolio Manager, take a look at the new decade for fixed income markets.
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White papersPrivate credit: Middle market opportunities to meet today’s challenges
Private credit has historically been an attractive investment.
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White papersNew institutional investor insights - 20/20 vision: a clearer path for growth
Diversification and selectivity will become ever more important in 2020 and beyond, especially as we think yields will remain low, returns will be tough to come by and volatility may rise. That means getting more exposure to more opportunities and more risks across asset classes, while remaining nimble.
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White papersIG Credit: The Hidden Risks of “Safe” Bond Strategies
Traditional investment grade bond strategies are meant to help their owners sleep at night. But hidden credit and interest rate risks make benchmark-hugging more hazardous than many realize. Counterintuitively, CLOs, ABS and EM debt may be part of the solution.
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White papersTurkey: Inflation And Monetary Policy
January’s inflation report and last inflation figures: The Governor of the CBRT debriefed last week on the first inflation report of the year January inflation figure released at 12.15% yoy, higher than in December (11.84%). The rise in housing, electricity and energy were the main drivers pf this increase. ...
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White papersAnother Breakthrough Year for China Bonds
The market made it into global indices but also broke records for defaults in 2019 and is facing uncertainty from the coronavirus: we take stock for 2020.
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White papersSentiment Shift Fuels Lower-Rated Rally
Uncovering relative value across high yield in 2020 may require looking in less obvious places.
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White papersEM Local Debt’s Time to Shine?
Emerging markets (EM) local currency denominated debt may be poised to outperform.
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White papersRisk-on, Risk-off & Repeat
Sentiment continues to swing back and forth in the collateralized loan obligation (CLO) market, but bifurcation remains the constant.
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White papersRates, Rallies & Risks
Investment grade credit markets posted a banner year in 2019; can the good times continue to roll?
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White papersEurope needs new approach to escape economic malaise
With monetary policy seemingly reaching the limits of its effectiveness, another approach is required for the continent to avoid ‘Japanification’. We believe a focus on productive sustainable investment could not only stimulate growth, but also bring about social and environmental benefits
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White papersFocal Point US outlook: a soft landing supported by the Fed
We expect the US economy to cool this year. Growth will likely ease from 2.2% to 1.6% because of the full effect of tariffs becoming effective during the first half of the year. The lagged impact of the 2019 rate cuts and that of the additional reduction we expect for Q2 will engineer a soft landing of the economy, despite still substantial headwinds. The Fed will take big steps to adapt its monetary policy strategy to a low-inflation, low-interest rates world. The broad view of this strategy should be clearer by summer, but the dovish bias it will most likely produce will be welcomed by markets.
