All Loans articles – Page 5
-
White papersCLOs Go Mainstream
Rates are on their way down—so why are investors lining up for these floating-rate securities?
-
White papersPrime Time for CLOs
In this Pensions & Investments Q&A, Adrienne Butler breaks down the qualities that make CLOs a solid investment amid shifting market dynamics and the potential for further rate cuts.
-
White papersThe shifting landscape within direct lending
The direct lending market is constantly evolving. Recently greater competition within certain parts of the market has impacted pricing and eroded lending terms. For these reasons M&G Investments believes in taking a conservative and highly selective approach.
-
White papersPrime opportunities within direct lending
Within the direct lending universe M&G Investments believes the most attractive opportunities lie within the more conservative end of the mid-market. We explore why this is likely to be the case and how conditions within the asset class have changed.
-
VideoAPAC Private Credit
We started senior lending in the Asia Pacific private credit market in 2011—and together with our 30+ years of managing private credit globally, our global scale, and a disciplined approach, we have become one of the most active lenders in APAC today.
-
White papersLocating the sweet spot in direct lending
On top of a compelling return, the northern European lower mid-market senior secured segment offers less downside risk and one of the best legal environments to negotiate any restructurings.
-
White papersThe Power of Diversification
Economist Harry Markowitz’s seminal 1952 essay on modern portfolio theory argues that through careful diversification, a portfolio can reduce the ‘specific risk’ associated with individual holdings, and more effectively track wider market performance. In this paper, however, we outline why Markowitz’s theory has limited practical application in private markets, and instead lay out an alternative approach to diversification that we feel is better suited to real estate and private credit.
-
White papersPrivate Debt: Few Facts Behind the Fears
Despite a rising tide of negative media coverage, we believe that private debt still has tremendous potential to deliver attractive risk-adjusted returns for investors. In this piece, we aim to separate fact from fear when sizing up the private debt market, thereby potentially helping investors and allocators capture the opportunities that lie within it.
-
White papersFacing the Music: Challenges and Opportunities in Today’s Commercial Real Estate Market
For commercial real estate (CRE) borrowers and lenders, central banks have been a persistent source of frustration in recent years. Aiming to rein in stubborn inflation, the Federal Reserve and most of its peers have maintained elevated interest rates longer than anticipated. That’s their mandate, of course. But the consequences have been immediate pain for CRE borrowers facing higher debt costs, along with a duller discomfort from falling valuations due to reduced liquidity and higher capitalization rates.
-
White papersA Soft Landing Is Still a Landing
What do slowing growth, lower inflation, tight credit spreads and a steepening yield curve mean for our fixed income views for the rest of the year? If the big story of the moment in equities is the epic rotation out of mega-cap stocks and into smaller companies, the equivalent in fixed income is the ongoing, sharp unwind of a record-breaking U.S. yield curve inversion.
-
White papersHigh Yield: A Continued Bright Spot
Compelling income opportunities supported by favorable fundamental and technical conditions continue to attract investors to high yield bonds and loans.
-
White papersCLO 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.
-
White papersCLOs: The Positive Streak Continues
While CLOs remain well-positioned for the months ahead, we continue to see benefits to staying up in both quality and liquidity.
-
VideoTrade finance made simple
In this video, Chris McGinley, Head of Trade Finance, outlines how Federated Hermes’ approach to trade finance differs from peers, how the team navigate risks, and the wider benefits of the strategy.
-
White papersRelative Value & Tactical Asset Allocation Q3 2024
We are not expecting a U.S. recession in 2024. We are looking for credit spreads to remain rangebound in the near future, and we prefer high carry while considering downside risks. Consumers and housing fundamentals continued to be solid, while CLOs fundamentals weakened further. Commercial real estate fundamentals are stable, but performance divergences are wide. We are neutral for both corporate equity and cash investments.
-
White papersESG Momentum in Non-Investment Grade Credit
Issuers are facing an increasingly high bar in relation to environmental, social and governance standards. Our recent panel discussion provided ideas on setting goals and working toward achieving them.
-
White papersWhy Allocate to Private Credit in Your DC Pension Plan?
Saving for a pension isn’t getting any easier. But allocations to private assets—such as private credit—could help. It’s getting harder for UK defined contribution (DC) savers to accumulate realistic amounts of capital for their retirement.Prospective real returns from most asset classes look unlikely to match those of recent years. And the cost-of-living crisis is making it tougher for savers to maintain their current pension contributions, let alone increase them in future. How can DC savers get ahead?
-
Video10 Minute Masterclass—Senior Secured Loans
Senior secured loans offer a unique blend of attractive yield potential with some protection against both credit and interest rate risk. At a high level, senior secured loans have the potential to provide attractive risk-adjusted returns and other portfolio benefits.
-
White papersEconomic Monthly: Strength or Softness?
Consumers have still not run out of runway. Despite having burned through the famous “excess savings” from pandemic-era stimulus, and despite a softer labor market, we continue to see consumers willing and able to spend. As we elaborate below, continued credit availability, investment spending and the labor market provide enough space for households to maintain their spending habits for the next several months.
-
White papersLocal banks lead on physical climate risk
The increased frequency of wildfires and flash flooding is already hitting insurance companies. But what about the climate exposures faced by banks in their mortgage and commercial loan books? Will Farrell investigates.
