All High Yield articles
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White papers2022 Public & Private Credit Market Outlook
Barings’ credit market experts weigh in on the future prospects for asset classes ranging from high yield and emerging markets debt to CLOs and private credit. From interest rates and inflation, to supply chains and COVID, the group discusses the risks and opportunities ahead.
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White papers
Rising Yields Present a Familiar Challenge in a New Era
Bond yields are rising again, which suggests that investors are bracing themselves for higher inflation and rising interest rates. Interestingly, inflation protected government bonds have even outperformed high yield bonds over the past two years. This implies a sustained shift in the economic and market environment.
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White papers
Solutions for a low-yield world
We believe US dollar-denominated China high yield bonds are currently a standout asset class in a world of low-to-sub-zero yields, and we see an attractive entry point for investors now. Find out why.
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White papers
M&A Resurgence A Potential Risk To Investment Grade Fundamentals
Our recent assessment of the M&A effects on the U.S. high yield market found that it tends to be a positive catalyst for performance. However, we see more nuanced effects—including the risk of negative rating migrations—across the investment grade corporate market.
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White papers
Fixed Income: China, EM Come Online
In our survey of over 350 institutional investors, responses confirmed that the trend of increasing investment in Chinese and emerging markets’ bonds remains in place. This paper looks at what investors are thinking when it comes to making investments in these assets.
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White papers
Evergrande and its spill-over effects: ongoing adjustments, but inflection point may be close
Despite Evergrande paid the coupon due on September 23, just one day before the 30-day grace period deadline, the company’s crisis is still unresolved. But it appears to be idiosyncratic and not systemic, as the market impact has been primarily on China’s HY bond index with limited spill-over into the broad EM HY space.
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White papers
Rich Valuations Balance Healthy Credit in Global High Yield
Credit analysis can expose value even amid tight credit spreads.
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White papers
High Yield: Still Strong, Despite Market Jitters
Bouts of short-term volatility are almost a given going forward—but in our view, much of the recent market concern overlooks how strong the average high yield company is today.
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White papers
SDG Engagement High Yield Credit commentary: Millicom
Millicom is a telecommunications service provider that delivers mobile, fixed-line broadband and pay-for TV services to businesses and households in nine Latin American countries.
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White papers
Investment Insights - Closing the funding and income gap
In this current low-yield environment, how can UK defined pension schemes position their portfolios to improve funding levels and cashflows as they continue de-risking?
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White papers
Fixed Income Investment Outlook 4Q 2021
A potential default in China and shifting policy in Europe have been key developments in an environment of volatility and higher yields that is likely to persist into the fourth quarter.
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Research Report
SDG Engagement High Yield Credit: H1 2021 report
Our focus on higher-quality credit in markets with strong engagement potential meant we didn’t benefit from the outsized rally in Covid-ravaged sectors in H1 2021, but the strategy continues to outperform its benchmark since inception
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Podcast
High Yield: Why Fundamentals May Be Stronger Than You Think
Barings’ David Mihalick and Chris Sawyer assess the health of the global high yield bond and loan markets against a backdrop of COVID uncertainty, potentially higher rates and an ever-increasing focus on ESG.
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White papers
Navigating Lowest Yielding Bond Market
A dizzyingly expensive bond market places investors in a vexing dilemma: secure a higher yield by increasing credit risk or watch their capital eroding in low/negative yielding ‘safe-haven’ securities. We argue that a third and more efficient way exists to navigate the lowest yielding bond market in history.
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White papers
M&A Revival A Likely Tailwind For High Yield Performance
U.S. M&A volume totaled $1.27 trillion through the first half of 2021, a 324% increase from the first half of 2020.1 Meanwhile, U.S. LBO deal volumes have surged this year to levels not seen since before the credit crisis, rising to over $354 billion in the first half of 2021.1
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White papers
Where next for credit markets?
There are a host of challenging questions for credit investors right now, among them:
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White papers
HY default rates: recent and expected trends
Persistent supportive funding conditions and the improved macro picture are consistent with a current and expected benign picture for US and European default cycles, which are likely to remain on a downward trend in the coming months.
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Research Report
Searching for yield – a role for junior capital
The search for yield has always been a focal point of the fixed income investor, but today’s investors must look far and wide to find it. U.S. 10-year Treasuries have not seen the top side of 4.0% since the end of the global financial crisis and are currently priced to yield less than 2.0%.
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White papers
Case study: Trade the When Issued (WI) security a month in advance using Micro Treasury Yield futures
Learn how investors can use smaller-sized, yield-based Treasury futures contracts to roll when-issue in advance, less expensively than previously possible.
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White papers
Fixed Income: Preparing for the Big Shift The Rise of Indexing in Fixed Income
Earlier this year, State Street Global Advisors conducted a survey of over 350 institutional investors. Our respondents came from pension funds, wealth managers, asset managers, and sovereign wealth funds.
