All Loans articles – Page 7
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White papersHigh Yield: Strong Tailwinds, But It May be a Bumpy Ride
High yield has a number of supportive tailwinds at its back—from a more manageable default picture and less exposure to potentially rising rates to investors’ continued demand for yield. But uncertainties remain, suggesting a potentially bumpy path to recovery.
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White papersCLOs: Cautious Optimism
Coming off a tumultuous year, CLOs look well-positioned going forward—particularly if the economy continues to heal and rates move higher.
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White papersPrivate credit markets – adjusting, adapting and responding
Lately, there has been renewed interest to get deals done and enter into negotiations on new investments as private credit markets re-open following a period of relative stability and reduced volatility in publicly-traded markets.
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White papersThree Reasons Loans May Be Poised for Strong Performance
It’s not as simple as ‘when rates rise buy loans; when rates fall buy bonds.’ Indeed, a combination of several factors has set the stage for loans to potentially deliver attractive total returns going forward.
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White papersDebt deliveries: US consumers bat on in fading light
The US consumer has long been in the top order of the global economy but, as Fiorino discovers, the days of debt-fuelled hit-outs on tame pitches could soon be over.
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White papersCLOs: A Bias Toward Quality
CLOs continued their rebound in the third quarter, but the potential for volatility going forward is high. In this environment, there may be benefits to moving up in quality.
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White papersResidential mortgages and consumer loans
In this paper, we focus on the case for investing in pools of residential mortgages and consumer whole loans and explore the specific benefits available to insurers making a strategic allocation to the asset class over the long term. We also demonstrate how adding residential mortgages to an investment portfolio could help insurers achieve additional portfolio-level diversification benefits and lower the overall solvency capital requirement (SCR) under the Solvency II standard formula.
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White papersLeveraged loan investment and ESG in light of Covid-19
In its all-encompassing impact, Covid-19 must raise regard for all stakeholders. Can the private equity playbook be unaffected in the post-Covid era? Equally, with momentum building behind other societal challenges, like climate change, how can the private corporate world be encouraged to move forward?
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White papersCovid-19 - Institutional Fixed Income market update briefing
Credit markets have continued to perform well, enjoying underlying official support and as investors continue to look to add risk. In this short summary, we highlight activity within the main fixed income markets, including leveraged loans and asset-backed securities in recent weeks.
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White papersCommercial Mortgage Loans: An Alternative Asset in LDI Portfolios?
Most public and private defined benefit pension plan sponsors aim to design an effective liability driven investment (LDI) strategy that balances several objectives – achieving the desired funded status for the plan, managing return-seeking assets in the portfolio against relevant benchmarks, and effectively de-risking and hedging future liabilities. LDI portfolios traditionally rely on a combination of Treasury securities and long and medium duration corporate bonds as hedging instruments.
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White papersNot created equal: Surveying investments in non-investment grade U.S. corporate
Institutional investors searching for yield and current income opportunities have increased their allocations to non-investment grade corporate bonds and loans. The case for investing in these assets is clear with the 10-year Treasury under 3% and historically low rates across the yield curve. Non-investment grade U.S. corporate debt has historically produced yields in the 6-10% range or greater.
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White papersThe TALF 2.0 Opportunity in Asset Backed Securities
During the 2008 – 10 financial crisis, the Federal Reserve’s Term Asset Backed Securities Loan Facility (TALF) enabled double-digit returns from high-rated ABS. What are the prospects under TALF 2.0, part of the Fed’s COVID-19 response?
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White papersCovid-19 and European asset-backed securities
Stress testing demonstrates resilience of asset class
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White papersHigh Yield: Finding Value in a Landscape Rife with Risk
Concerns surrounding COVID-19, lower oil prices and a global recession have weighed heavily on markets—including global high yield bonds and leveraged loans. While value opportunities are emerging, the landscape is punctuated with risks that must be carefully navigated.
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White papersEuro Investment Grade Credit Reacts To The ECB’s Bazooka: Selective Opportunities
Covid-19 is expected to severely damage the European economy in the coming quarters. The answer at the European level to this disruption has been strong on the monetary policy side, with the implementation of the temporary Pandemic Emergency Purchase Programme of €750bn and targeted longer-term refinancing operations, and at the single country level, with targeted fiscal measures.
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White papersSpotlight on leveraged loans - European loan market update
Loan prices have fallen sharply in a way not seen since the global financial crisis (GFC) with the European leveraged loan index down c.17.5% in the month to date to 25 March close. This is highly unusual. The European loan market has been fairly resilient in the face of various bouts of volatility over the past 10 years (in 2011, 2016, 2018, for example), owing to its institutional investor base.
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White papersDistressed Debt: Despite Challenges, Opportunities Persist
Recent market and economic volatility may be the trigger that distressed debt investors have been waiting for, but capitalizing on opportunities will require a different playbook than those of past cycles.
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White papersUpdate on Global Non-Investment Grade Credit Markets
We unpack the short-term and long-term, transitory and permanent impacts of recent news on the high yield and loan markets.d markets.
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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.
