All High Yield articles – Page 7
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White papers
Opportunities across the credit spectrum for multi-sector income investors
As central banks near the end of hiking cycles, the environment is becoming increasingly supportive for fixed income.
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White papers
ECB: Not Pausing―Yet
The ECB’s May rate hike was all about avoiding surprises and distinguishing itself from the Fed’s dovish message the day before. With inflation still high, the ECB “is not pausing.”
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White papers
Don’t Bank on Bank Loans in 2023
As bond yields rose in 2022, investors sought refuge in high-yield bank loans, whose floating coupons are often heralded as an antidote to rising rates. But with conditions shaping up differently in 2023, bank loans may face challenges. We think income-seeking investors should instead consider a more diversified approach that balances rate and credit risks. Here’s why.
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White papers
Why are fallen angels the pick of high yield?
How could fallen angels offer a high-yield (HY) exposure of superior quality in a strategic allocation? We consider how investors can use these bonds to improve performance potential while mitigating relative ratings risk. In our previous insight of this three-part series, we made the case for a dedicated allocation to the segment due to the ability of price recovery to drive outperformance, and a compelling supply outlook.
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White papers
Fixed Income Perspectives April 2023
Markets appeared optimistic amid strong macro indicators until early March, when the collapse of two US regional banks and forced sale of Credit Suisse led to a risk-off sentiment.
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White papers
Q2 2023 Strategic Investment Outlook: Balancing the Strategic and the Tactical
Balancing different time horizons always presents challenges. It may be intellectually ugly to hold different positions over short horizons and long horizons, but sometimes the macro setup suggests it’s the right way to proceed.
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White papers
Unlocking the Investment Potential of “S” in ESG
Social issues are perhaps the most difficult to research and least understood by investors with an environmental, social and governance (ESG) focus. But the risks and opportunities they represent are growing, and investors need a way to step up to the challenge.
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White papers
With High Yield, Shorter May Be Better for Insurers’ Yields…and Capital Efficiency
With yield curves inverted in many parts of the world, investors no longer need to increase interest-rate risk to bolster yields. Instead, they can achieve the same end with shorter-duration high-yield bonds. For insurance investors that have typically shied away from high yield, we think this landscape—and the regulatory treatment—present a compelling opportunity.
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Podcast
Riding the Curve: Isolating Income
The big difference between 2022 and 2023 for bond investors can be summed up in one word: Income. George Bory highlights the opportunities in this week’s episode.
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Video
High Yield: Finding Value in a Volatile Environment
Chris Sawyer, Head of European High Yield, discusses current conditions in the global high yield market and explains how they are creating the potential for attractive total returns.
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White papers
SDG Engagement High Yield Credit, Annual Report 2022
In a review of the past 12 months, the investment team offers an in-depth view of engagement highlights, progress on milestones, performance and case studies.
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White papers
Fallen angels: beyond the downgrade
The dynamics of fallen angels make for compelling risk-adjusted returns but avoiding falling knives is paramount to maximise value for investors. From performance drivers to the supply outlook, we explore how active management can ensure we capitalise on a bond’s fall from investment grade.
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White papers
PM Spotlight: A Stock-picker at Heart Manages High Yield Bonds
This issue of PM Spotlight profiles Sarah Harrison, senior portfolio manager for Plus Fixed Income. Read about Sarah’s first great high-conviction trade in high yield and what keeps her coming back to high yield bonds.
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White papers
High Yield: Charting a Steady Course Through Roiling Seas
Banking stresses added volatility to first-quarter markets already coping with rising rates and recession fears. Still, with corporate fundamentals sound, high yield investors and issuers are more cautious than fearful.
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White papers
A tale of two markets: Contrasting the fortunes of European and US High Yield
The European High Yield (HY) market has outperformed the US market over the last five, 10 and 20 years. We compare the trends in charts and ask: Will this continue and what are the main similarities and differences between the US and European markets?
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White papers
Solving for the Climate Transition in High Yield
A holistic approach to climate considerations can offer an opportunity to invest in a diversified portfolio of high yield issuers that are committed to reducing or maintaining a low carbon footprint, while also targeting high current income and capital appreciation.
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White papers
From Anomaly to Opportunity: High Yields on Short Bonds
Stock and bond markets were shaken by the recent banking crisis in the US and Europe. Although both US and European authorities took prompt action to prevent damage to the financial system and dampen market volatility, these episodes highlight the importance of risk management and the worth of proven investment strategies that can both mitigate risk and generate worthwhile returns.
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Blog
ECB: Having It Both Ways, For Now
As expected, the ECB stuck with its guidance and raised interest rates 50 bps at its March meeting. However, recent market turmoil has clearly made the central bank cautious.
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White papers
Weathering the storm of uncertainty – how resilient is High Yield?
Holding sufficient cash, maintaining a portfolio with diverse liquidity sources, adept and nimble trading are the best ways to combat this risk.
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Blog
The Breadth of Benefits in Global High Yield
The fifth post in a series on European high yield explores the benefits of a global high yield strategy.