All Loans articles – Page 9
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White papersCredit selectivity at the fore in European high yield bond and senior loan investing
The European leveraged finance market is recognised for its potential to offer a compelling income advantage versus other, more traditional fixed income asset classes. Current market factors such as low default rates for speculative-grade debt and further stimulus from the European Central Bank are expected to continue to lend support to this asset class, which has enjoyed strong performance in 2019. Still, a prudent perspective would view the market as standing on relatively fragile ground in a period of low yields, lackluster economic activity and weakening growth outlook.
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White papersZombies stalk the bond markets
Writing in the Financial Times, senior investment manager Galia Velimukhametova explains why companies kept alive by low borrowing costs threaten to bring about a downturn.
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White papersThe growing opportunity in European consumer credit
European consumer credit is one of the largest and most diverse loan asset classes in Europe. It has also had resilient performance through economic cycles. Historically, these assets have remained confined to banks’ balance sheets, but structural change in the banking landscape in Europe is opening up a sector previously inaccessible to institutional investors.
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White papersCLOs: Triple C's and Market Unease
Taryn Leonard and Melissa Ricco, Co-Heads of Barings’ Structured Credit Investment Team, discuss the recent loan market weakness, and how technical pressures are creating value opportunities in the CLO market.
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White papersSpotlight on bank regulatory capital - Mechanics of bank portfolio risk transfer transactions
Bank regulators permit banks to meet more stringent post-crisis capital ratios by undertaking ‘risk-sharing’ transactions Banks can manage their regulatory capital on an ongoing basis through whole loan asset sales, full capital structure securitisation or synthetic securitisation The mechanics of these transactions may differ, but all three approaches focus ...
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White papersCase for GDI – A Diversified Approach to Risk-Adjusted Income
Seeking to maximize income per-unit of risk with a dynamic, multi-asset multi-manager solution. The theme of late-cycle volatility, spurred by geopolitical tensions and slowing global growth, has been well documented. Low global interest rates continue to present challenges to meet income needs and control risk.
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White papersABS: Uncovering Opportunities Beyond the (IG) Index
Amid an ongoing search for yield and with a number of potential risks on the horizon, there may be benefits to exploring opportunities outside of traditional corporate and government bonds—such as certain parts of the asset-backed securities (ABS) universe.
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White papersImpactful intent: housing for a sustainable future
We believe that we can use our platform at Hermes to deliver a vision of a sustainable future that can help create social cohesion and hasten the transition to a post-carbon economy.
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White papers360° – Fixed Income report, Q4 2019
Distortions in credit markets mean that opportunities for open-minded investors lie beneath the surface, but they are few and far between. An inquisitive, active approach is needed to discover pockets of value and navigate storm clouds that linger on the horizon.
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White papersThe Real Story Behind the CMBX.6: Debunking the Next "Big Short"
The CMBX.6 has become such a popular short by speculators placing bets on mall closings that it has been profiled in the media as the next “big short.” But the narrative of the dying regional mall conceals other realities. In fact, the American mall is evolving to meet modern consumer demands. And thanks to the specific property composition of the CMBX.6, the loan losses in its collateral pool will likely be modest. As a result, returns on the CMBX.6 are likely to be far higher than short sellers expect.
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White papersA High-Income Survival Guide for Late-Cycle Markets
It’s easy to get spooked in late-cycle markets. But we think there’s a way to de-risk your portfolio and still generate a decent level of income—no magic spells necessary.
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White papersHigh Yield: Poised to Capture Relative Value
Despite mounting uncertainty in the broader markets, high yield delivered broadly positive returns in Q3. As we continue to move through the late stages of a prolonged cycle, credit selection will be critical.
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White papersIG CLOs: Strong Excess Return Potential, Lower Volatility
IG CLOs can offer investors the benefits of spread pick-up and lower mark-to-market volatility, largely due to underlying collateral performance and structural security. But above all, manager selection is critical—even at the highest-rated tranches.
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White papersWebinar: objective danger in the investment environment
Markets may have reached record peaks earlier this year, but the geopolitical environment is fraught and central-bank oxygen may not prop up asset prices for much longer. We expect more outbursts of pent-up volatility going forward as investors face up to the growing risks in this high-altitude market.
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White papers
Are High Yield Investors Being Compensated for Risks?
In the context of today’s fundamental backdrop and default outlook, spread levels suggest investors are being fairly compensated, relative to other points in the cycle, for the amount of risk they are taking.
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White papersLeaders’ Perspectives: Quarterly – Autumn 2019
In the Autumn 2019 issue of the Leader’s Perspectives:
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White papersIlliquidity: understanding the premium in fixed-income markets
Years of low interest rates have prompted fixed-income investors to look beyond traditional sources of yield and consider whether illiquid assets can boost returns. But while this illiquidity premium is widely discussed and increasingly sought, it has been inadequately measured and investors lack an understanding of how it operates in different conditions.
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White papers
Fed And Ecb, Bridging From A “Mid-Cycle Adjustment” To An “Impactful And Significant” Package.
The minutes from the latest ECB meeting suggest that the ECB is likely to proceed with a full set of measures in September, confirming not only the indications from President Draghi following the meeting but also the very latest statements by Olly Rehn, calling for the need for an “impactful and significant” package.
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White papersEuropean Smaller Companies: An Evergreen Growth Opportunity
In this Q&A, Nick Williams, Barings’ Head of Small Cap Equities, discusses the opportunities his team is seeing in the current environment, and explains why an active approach, combined with rigorous, bottom-up stock selection, is key to identifying high-quality companies.
