Institutional investors relying solely on a core bond or similar all-in-one approach for their fixed income exposure may be missing out on an important investment opportunity set: leveraged finance assets, which include key below-investmentgrade market segments such as high-yield corporate
Bright Signs Amid the Gloom Spreads on high yield bonds and bank loans rallied sharply in April, with index levels 100-200 basis points (bps) tighter compared to quarter-end and nearly 400 bps inside of the mid-March wides. On the negative
The coronavirus panic, falling oil prices and a weaker domestic economy largely inuenced the recent Japanese market correction. However, we believe global and domestic cyclicals are well positioned for the eventual recovery. The current performance of the Japanese markets
Behind the volatility lients have asked us about the difference between the Global Financial Crisis (GFC) and the crisis we face today. During the GFC, control of the recovery was largely in the hands of the government bailing out troubled
Our Key Risk Indicators (KRIs) bridge the gap between sustainability disclosure standards such as those set by the Sustainability Accounting Standards Board (SASB) and quantifiable ESG trends developed specifically with investment analysis in mind. The following is an update of
Given the unprecedented scale of disruption caused by the coronavirus pandemic, which has shut down most segments of the global economy in ways not seen since the Second World War, investment models based on past economic slowdowns or macro theme-based
Capital Market Line We were eagerly awaiting the first quarter of 2020 to demonstrate that 2019 merely marked a slowdown, not the onset of a late-cycle recession. While we’ve been proponents of the global economy’s mid-cycle status, we had acknowledged
The Indian equity market has not been immune to indiscriminate selling due to coronavirus pandemic fears. But while headwinds have picked up for Indian equities in line with global peers, as long-term investors in India, we believe the market continues
Going into 2020, we expected China’s economy to modestly decelerate from the 6.1% pace of growth in 2019, but to cyclically improve as headwinds from the US-China trade war subsided. The coronavirus outbreak presented a signicant exogenous shock to China’s
Markets continue to be dominated by COVID-19. In the early weeks of March, Imperial College’s initial projections of huge numbers of deaths if intensive care units (ICUs) were to overflow coincided with grim news out of Italy, where such scenarios
Capital Market Line Last year proved to be a turning point. Word of an imminent trade deal between the US and China represented a peak in trade escalation and uncertainty. Global manufacturing – the epicenter of the trade war –
As a global organization, PineBridge is focused on the health and safety of our employees and servicing our client portfolios as the coronavirus (COVID-19) pandemic unfolds. We are closely monitoring developments in all regions to follow this evolving situation and
The London Interbank Offered Rate (Libor), the most widely referenced short-term interest rate in the world, is set to be phased out after 2021 owing to concerns about its subjectivity. Given the magnitude of financial contracts tied to US Libor,
Leveraged Finance Asset Allocation Insights Spreads on high yield bonds, bank loans, and CLO debt tranches continued to tighten throughout the first few weeks of January amid a backdrop of consistently positive macroeconomic data, a signed Phase One US-China trade agreement,
Capital Market Line Last year proved to be a turning point. Word of an imminent trade deal between the US and China represented a peak in trade escalation and uncertainty. Global manufacturing – the epicenter of the trade war – began to
In a post-crisis economy characterized by insufficient demand and a liquidity trap, few would have prescribed a policy mix of torrential monetary accommodation teamed with tight fiscal spending. Yet that’s precisely what we got, spawning economic frustration and populism. Politicians
As the United States moved closer to a phase-one trade deal with China and investors looked past the quarter’s earnings trough into 2020’s expected rebound, the rally in high yield and loan spreads continued, and even accelerated. Notably, lower quality
Last quarter’s return of extremely accommodating monetary policies and the renewal of US-China trade talks were the two most signicant developments affecting our ve-year outlook as expressed in our Capital Market Line (CML). Since our CML focuses on how events
A large and liquid domestic equity market in China is shaping up to be one of the world’s biggest investable universes. To capture the generational opportunity of China A-shares, international investors need to navigate a unique environment that’s a source
While bank-loan total returns continue to trail those of high yield by a significant margin year to date, the asset class outperformed high-yield bonds in November amid a backdrop of higher Treasury rates and slowing retail outflows. Less susceptible to
In 2020, we see three forces in the global outlook: the macro, monetary policy, and political cycles. While the macro cycle is typically the dominant market influence, in 2020, we see monetary policy wielding the most sway. The political cycle
The end of this expansion’s third mini-slowdown and rebound in global PMI’s should lead to a greater rebound in cash flows than in GDP, like the prior two mini-slowdowns. A plateauing of trade hostilities, instead of outright reversals, is enough
Private Funds Outlook Amid the current environment of slowing growth, below-target inflation and ultra-low interest rates, highly levered financial engineering is likely to remain in vogue in 2020. In spite of these conditions, doors may open to smaller, mid-market transactions
The extended length of the current economic cycle obscures the many mini-cycles in industrial and consumer sectors – early identification of these periods can provide the potential for meaningful alpha opportunities. Companies that embrace digitalization, data capture and the use
Fixed Income Asset Allocation Insights With credit spreads now largely in a fair valuation range, our current allocations remain unchanged. After cutting the federal funds rate by the anticipated 25 basis points (bps) and lowering the target range to 1.5%-1.75%,
"Global Asset Allocation: The View From #Emea" -> https://www.opiniopro.com/2020/05/t-rowe-price/global-asset-allocation-the-view-from-emea-6/ via @TRowePrice #global #assetallocation #price #fed
"The #emergence of Covid-19 has destabilised# stock markets the world over" -> https://www.opiniopro.com/2020/05/columbia-threadneedle/the-emergence-of-covid-19-has-destabilised-stock-markets-the-world-over/ via @CTinvest_EMEA #coronavirus
"#Mixfondsen: de juiste cocktail van #rendement en #risico" -> https://www.opiniopro.com/2020/05/actiam/mixfondsen-de-juiste-cocktail-van-rendement-en-risico/ via @ACTIAM
