Change may be the only constant over the coming months. We believe investors will need to be dynamic in striking a balance between managing risks and seizing opportunities. Since we published our last outlook, many of the dynamics we observed
Active Credit Allocation in Portfolios Jon Mawby discusses the advantages of active credit allocation in portfolios now that government bonds no longer serve their traditional purpose. Governments have launched massive efforts to underpin their economies in the wake of the
Over the last five months, market participants have been following the COVID-19 pandemic as it has evolved into a global health crisis and forced various forms of lockdown across the world. The next 12-18 months …
Winners vs. Losers in Credit The extraordinary monetary and fiscal policy measures enacted during the pandemic have added further impetus to the trend of rising corporate debt and less stringent lending standards that began in the aftermath of the global
Weekly commentary Markets have rallied sharply from their virus lows, driven by the policy revolution and economic restart. Tighter valuations increase the risk of volatility, particularly ahead of divisive U.S. elections. Last week’s equity selloff illustrates this. Against …
Markets reacted violently as global economies adopted shelter-in-place policies to combat the spread of Covid-19 earlier this year. Corporate bond credit spreads (or risk premiums), driven by heightened uncertainty and revenue pressure, widened dramatically to reflect the increased risk …
Markets reacted violently as global economies adopted shelter-in-place policies to combat the spread of Covid-19 earlier this year. Corporate bond credit spreads (or risk premiums), driven by heightened uncertainty and revenue pressure, widened dramatically to reflect the increased risk of
Emerging-market (EM) debt rebounded strongly in the second quarter across hard currency sovereign and corporate credit as well as local-currency debt. We believe the market has entered a new phase following the broad-based recovery in the second quarter that will
In Credit Core government bond yields were marginally higher with the rise in risk sentiment. Non-farm payroll in the US hit a three-month streak of positive gains, with jobs rising and unemployment falling more than expected (rate now 10.2% vs
Emerging-market (EM) debt rebounded strongly in the second quarter across hard currency sovereign and corporate credit as well as …
Market Review It’s been a very strong quarter for equities and credit as central banks and governments provided enormous amounts of stimulus and economies started to reopen. Despite the strong rebound in risk …
Weekly commentary We recently moved to a strategic overweight on credit after being underweight for the past year. Cheaper valuations compensated for the risk of corporate defaults and downgrades in the wake of the Covid-19 pandemic, in our view. We
H2 Outlook As we emerge from the Covid-19 shock, we expect market developments to eventually become more complex. In the next few weeks, the easy part of a post Covid-19 recovery will be over and by then credit and equity
Credit Continuum Monetary stimulus measures and high levels of cash continue to support spread tightening between now and year end. The rally in credit markets has continued in May given Federal Reserve and European Central Bank support measures and the
In Credit It was a week of data releases and an opportunity to get a glimpse as to whether an economic recovery is underway. The evidence would so far suggest that this …
Key points The gap between the US and Europe on the pandemic front is getting wider – the US responds to market wobbles by more stimulus announcements. We explore the “feedback loop” between state guarantees to business loans and fiscal
At Janus Henderson we have long seen asset-backed securities (ABS) as a valuable component of diverse multi-sector credit portfolios; typically either …
For corporate pension funds, increased exposure to long credit could help: Close the spread duration gap: European corporate pension funds are generally underweight spread duration versus their liabilities. In the current market environment, wider spreads offer an opportunity to invest
Webinar – ESG & Credit: How to Mitigate Both Financial And Climate Risks Institutional investors are increasingly looking at making their significant fixed income allocations part of their sustainable investing strategy. But whilst the recent market turmoil highlights the need
Americas CIO View The severe economic damage of widespread non-essential activity lockdowns to U.S. and European economies is moving behind, but we expect a slow recovery with elevated …
In Credit Core government bond yields were little moved last week. Covid-19 news continues to …
White Paper Rising Stars in a New (Fed) World Recent unprecedented action by central banks, notably the Federal Reserve on April 9th, has helped markets recover meaningfully. This has caused many investors to wonder, “What do we do next?” or,
Credit Markets Weekly Sovereign Austria, Sub-Sovereigns & Agencies, Financials & Covered Bonds, Corporate Bonds Earnings season demonstrates impact of COVID-19 pandemic The European reporting season is drawing to a close: More than 80% of the …
Research & Strategy Insights Flows of new bank loans to the corporate sector reached a record high in March in the Euro area, and the European Central Bank (ECB)’s Bank Lending Survey suggests that credit institutions are planning to ease
The breadth of the economic shutdowns to contain the spread of the coronavirus will affect nearly every sector across the global corporate universe—some positively, but most negatively. Therefore, credit selection will be paramount to generating positive alpha going forward. Thorough,
Investors need to manage risk to take a breather and observe the shifting global economy, says our expert #Norman_Villamin in the Hong Kong Economic Times. Read on.
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