All High Yield articles – Page 2
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White papers
CLO Equity: 101
From quarterly cashflows to compelling total return potential, CLO equity offers a number of potential benefits. But the asset class is often overlooked, due in large part to its perceived complexity relative to more traditional fixed income investments.
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White papers
Taking the fear out of high yield debt investment
Fixed income investors cautious about gaining exposure to high yield debt have little to fear as credit quality in the sector improves and attractive new pockets of opportunity open, says Insight Investment1portfolio manager and senior credit analyst, Cathy Braganza.
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White papers
Asia’s New Balance: High-Yield Market Offers More Diversity, Lower Risk
After a turbulent few years caused by the shakeout in China’s property sector, the Asia high-yield bond market has found a new equilibrium based on sound fundamentals, attractive valuations and strong returns. We think it’s time for investors to consider its growth potential and diversification benefits.
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White papers
Dispelling the myths around emerging market debt
Things in emerging markets are not always what they seem. In December 2023, Argentina elected as president Javier Milei, a rabble-rousing populist fond of brandishing a chainsaw on the campaign trail. Milei had a radical agenda, including dollarising the economy and abolishing the central bank – just the kind of policies that alarm investors.
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White papers
Higher for Longer: The CIOs’ Weigh In
While this year’s inflation and rates environment has disappointed many, we see it as a bump in the road that has created opportunity in several markets.Midway through 2024, it’s pretty clear what the story of the year has been so far: stickier inflation and higher rates for longer than many investors wanted or expected.
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White papers
US high yield: Broader financing options soften impact of higher rates
Heading into 2023, the consensus narrative appeared set. The Federal Reserve had embarked on an aggressive interest rate hiking cycle to combat spiralling inflation. A US recession was expected to follow, as household excess savings built up during the pandemic were exhausted and corporate borrowing conditions tightened dramatically after the benign post-global financial crisis era of low interest rates.
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Video
Emerging Markets: Q2 CIO Update
Chief Investment Officer Sean Taylor provides a Q2 update on what’s driving emerging market growth, a regional outlook on key countries, the impact of the 2024 global election cycle, and why country selection is a key risk control in seeking opportunities.
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Video
Talking Markets – Contingent Capital
Head of Fixed Income, Lloyd Harris and Credit Analyst, Cameron Geering give an overview of contingent capital, its diversification benefits along with why they like the asset class and what gives them a competitive edge as investors.
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White papers
Specialty Finance: High-Yielding, Short-Duration and Uncorrelated Private Credit
The underlying assets, bespoke structuring and market dynamics of Specialty Finance can complement a traditional private debt strategy.
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White papers
European loans: Why now?
BSP-Alcentra believes the European loan market has a more defensive sector profile, and an allocation to European loans is still very attractive, even within a declining interest-rate environment.
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White papers
High yield: once again doing what it says on the tin
In investing, where trends can shift rapidly and market conditions are ever-changing, the allure of fixed income was that it did what it said on the tin: stable and reliable returns. The global financial crisis (GFC), however, saw a transformation of the landscape marked by falling and persistently low interest rates and, subsequently, yields. Suddenly fixed income wasn’t so reliable. But with that movement in reverse, we believe bonds could be a safer bet than equities over the next few years.
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White papers
AT1s: Finding the Risk/Reward Sweet Spot
It’s been over a year since Credit Suisse; subordinated financials once again offer significant potential for credit experts with the tools to identify the right paper while riding the volatility.
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White papers
Infrastructure debt in a sweet spot for 2024
Attractive risk-adjusted returns during uncertain times
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Video
Navigating Dynamic High Yield Markets
We have been investing in high yield bonds, loans and CLOs for decades—managing investments on behalf of our clients through the ups and downs of multiple market cycles. And importantly, we have done so with consistency.
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White papers
High yield structured credit: Ripe conditions within the European market
What is attracting investors to high yield structured credit?
Structured credit has grown considerably over the last few years. The trends propelling the asset class are long-term with investors potentially able to capture equity-like returns from the asset class. Capital at risk. -
White papers
Fixed income: What’s the issue with the new issue premium?
Amid surging demand for investment grade (IG) corporate bonds, the new issue premium typically offered by companies turned negative in the first quarter of 2024. This comes as investors seek to lock in higher yields before potential central bank interest rate cuts and demonstrates the weight of capital seeking to enter the market.
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White papers
The case for resilient high yield private credit
With inflation lingering and rates moving at a much slower pace than expected, infrastructure debt, particularly in the higher-quality sub-investment grade space, offers attractive returns and resilience for investors seeking a safe haven in a changeable market, explain Infranity experts.
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White papers
Fixed Income – A new era for bonds
Surging inflation brought an end to the decade-long era of low bond yields. In the decade ahead, we believe bond yields will not return to the near-zero levels of the recent past or see the steady capital appreciation which marked the prior 30 years. Instead, our view is that inflation and real yields are more likely to remain closer to their long-term averages, supported by central bank policy, changing supply/demand dynamics, and the risk that inflation could spike again.
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White papers
High yield: differentiation returns to drive the next leg of performance
European high yield has outperformed the US this year, which in itself is a pretty rare occurrence. But things get even more interesting when you look at what’s driving those returns.
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White papers
Higher Yields Burnish IG Credit’s Luster
Spreads continue to grind tighter—but current elevated yields, combined with the potential for attractive total returns, continue to draw investors into IG credit.