Gunpowder, treason & plot.
Macro / government bonds We got the first reading of US GDP for Q3 last week. The economy is actually growing stronger than expected at 1.9% q/q annualised (exp 1.6% / 2.0% in Q2). It remains propped up by a
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Tag "high yield"
Junk or jewel? Assessing the role of high-yield bonds in a diversified portfolio
High-yield bonds, which represent the debt financing of companies rated below investment grade by the primary rating agencies (Ba1 or lower for Moody’s Investors Service, BB+ or lower for Standard & Poor’s), carry greater issuer risk than traditional fixed income
High Yield Bond Opportunities Are Going Global
A truly global high yield strategy can provide diversification. Fixed income investors may want to focus on higher-yielding, sub-investment-grade strategies as global central banks shift back into monetary easing, pushing yields on high-quality investment-grade bonds to very low—or negative—levels. In
What happens to high yield bonds in times of market stress
We look at whether investors are right to be wary of high yield bonds amid rising macroeconomic and geopolitical uncertainty The current macroeconomic backdrop is creating challenges for investors. Global growth is slower and inflation is benign. Meanwhile, central banks
PensioenPro – Leven en beleggen in tijden van lage rente
Als het om pensioenen gaat, is de rente allesbepalend. Wat gebeurt er op rentegebied, wat te doen bij stijgende/dalende rentes, hoe zit het met de reële rente en wat zijn de laatste inzichten op gebied van matching en vastrentende beleggingen?
Seek high yield opportunities, but be aware of liquidity conditions
Investment Insights Blue Paper The backdrop for global high yield Theme 1: Central bank dovishness Speculative grade bonds have been among the major benefi ciaries of the rapid turn of both Fed and ECB monetary policy stances to much more
Volatility is likely path forward for high yield
Volatility is likely path forward for high yield after strong advance in first half of 2019 Aided by expectations of monetary easing, the second quarter of 2019 saw high-yield corporate bonds on both sides of the Atlantic continue one of
Strength Amid Weakness: Why Active High Yield Strategies Shine – and Especially During Downturns
Years of persistent low yields across much of the global fixed income market have spurred many investors to look lower down the credit spectrum in search of yield, or to increase their allocation to equities, in an effort to meet
A turn in the tide?
Markets at a glance Core government bond yields were sharply lower last week as the US Federal Reserve and Donald Trump gave financial markets much to ponder. On Wednesday, the FOMC reduced interest rates by 25bps, the first move since
The downgrade risks facing passive investment grade bondholders
Investors are increasingly worried about the growing size of the BBB-rated corporate bond market, the lowest tier of investment grade (IG) debt. The risk is that much of this segment could be downgraded to high yield (HY) when the next
A Deeper Look into Financial Vulnerabilities
Core Matter – Almost ten years of record low interest rates have raised leverage in the non-financial sector as well as investors’ tolerance for riskier and less liquid instruments. As a result, the average quality of corporate debt has worsened.
High Yield: Oasis in search for yield?
Since early 2016, US HY default rates have experienced a sort of “mini –cycle”, peaking at the end of 2016. Nevertheless, the recent rise and fall movements appear mostly commodity driven: default rates would have remained fairly stable if energy
Workshop Asset Allocation at the tail end of an Equity Cycle (Rotterdam)
Asset Allocation at the tail end of an Equity Cycle Preparing for the Next Crisis Although many people in the financial markets will agree that we are getting close to overheating of the economy, there is little we can do to
Trade tariff troubles …
Macro/government bonds It has been a busy couple of weeks in terms of economic data releases, though core government bond markets have not moved appreciably on this type of news. Rising trade tension rhetoric between the US and China, as
7 year underweight consensus recommendation for Fixed Income
The consensus recommendation for Fixed Income is underweight for almost 7 years! Just 3 out of the top 10 asset managers are overweight now! Read the Aegon Asset Management, NN Investment Partners and JP Morgan reasons at www.opiniopro.com
Multi-Asset Solutions Weekly Strategy Report
Global markets and multi-asset portfolios An overweight to extended credit markets, particularly U.S. high yield, is our preferred method for taking risk in many of our portfolios today. This is somewhat at odds with historical performance—credit markets have not generally
Macro and Rates Overview
Fixed Income Monthly Government bonds fell in February, defying disappointing economic data. Yields tracked modestly higher, although failed to keep pace with the recovery in equities and risk sentiment. Led by UK Gilts, most developed markets saw yields rise over
The Case For Quantitative Investment Approaches In The Corporate Bond Market
Introduction US High Yield (‘HY’) corporate bonds are often included in asset allocation models given their idiosyncratic return profile relative to other fixed income strategies. Historically, HY bonds have allowed investors to capture a credit risk premium that, while positively
High Yield: The Comeback Kid
The US high-yield market has suffered ten peak-to-trough losses greater than 5% in the last 20 years. On average, investors recovered their losses in only four months—and sometimes as few as two. Following the longest and largest drawdown of –35%,
The credit party isn’t over yet
Weekly Bond Bulletin European high yield has started the year in good spirits, supported by attractive valuations, robust credit quality and positive technicals. But with global growth momentum slowing, will the credit party continue?
European high yield 2019
One year ago we expected in our base case scenario a total return of 1% to 2% for the European HY market for 2018 with some moderate spread tightening. We were clearly wrong with our base case forecast as the
US high yield: accounting for outside risk
Investment Insights With the US economy now in its ninth year of expansion, pressure from higher interest rates, future US Federal Reserve (Fed) rate hike expectations and concerns around tariffs and trade wars have been weighing on the majority of
European high yield: Time to take notice?
European high yield (HY) has been a much-overlooked asset class recently but is it time for investors to pay attention? The reach for yield from other quarters pushed European HY bond valuations, in many cases, to uncomfortably tight levels. In
Goed moment high yield obligaties te overwegen
Maandjourmaal Het tij zit mee voor hoogrentende bedrijfsobligaties, ofwel ‘High Yield obligaties’. Deze categorie bedrijfsobligaties kent een relatief hogere coupon dan reguliere bedrijfsobligaties. Uiteraard hoort hier een hoger risico bij. Echter, de macro-economische cijfers zijn nog steeds goed, de wereldwijde
Still a strong investment case for emerging market assets
Investment Monthly Professional We remain overweight global equities and local-currency emerging market (EM) government bonds. We also retain our underweight stance on developed market (DM) government bonds, and our neutral view on global investment-grade (IG) and high-yield (HY) corporate bonds
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Asset Allocation Consensus September
Stoxx 600 Earnings Outlook – European Aggregate Estimates And Revisions -> https://t.co/XfX2W0ZtDw #stocks #equity #earnings #Europe via @stoxx
Factor investing in corporate bonds: from empirical research to investment practice -> https://t.co/Z8TpTgsaXz #factorinvesting #fixedincome #Credit #corporatebonds #carry #value #Momentum via @NNIP
Global Investor Experience Study: Fees and Expenses -> https://t.co/9rr3IiHN1Y #fees #expensive #ETF #mutualfunds via @MorningstarBNL
Today’s Gloom, Tomorrow’s Opportunity -> https://t.co/kmU1lyXkOq #Japan #centralbank #BoJ #assetallocation #Credit #fixedincome #equities via @PineBridge
