Webinar – High Yield Bonds High Yield Bonds – “Sorting the wheat from the chaff” During the global financial crisis in 2008 liquidity was directed to support the financial system. With the COVID-19 virus this liquidity is directed to support
Cycle, Further, Interrupted. The COVID-19 virus has stalled the mini-cycle rebound and made a global recession likely. While the duration of the virus pandemic is unpredictable, policy stimulus, pent-up demand and a lack of major imbalances argue for a solid
Time for a rethink
Qontigo Applied Research White Paper In a world where some investors pay the government for the privilege of lending it money—and where even fixed income securities with the lowest investment-grade credit ratings yield barely more than 1% per annum—the “hunt
Webinar – Global Fixed Income markets update The ECB surprised markets this morning by announcing an emergency EUR 750 billion lifeline to mitigate the COVID19’s economic repercussions and support the European economy. Though sizeable, investors are left to wonder whether
Update: Yield-Duration Heatmap – 09/03/20 vs. 02/03/20
Monthly Review Sovereign bond yields reached record lows as the outbreak of the coronavirus in Europe initiated a large sell-off globally. 10-year US Treasury yields posted another big monthly decline and outperformed other markets, driven by safe haven demand. German Bund and UK
High-yield market remains supported by favourable capital market environment The market for EUR bonds from non-financial companies with speculative rating has been growing steadily in recent years. The expansive monetary policy of the ECB has strongly contributed to this, causing
Quarterly macro and market insights Our macro outlook for 2020 is modestly constructive. Recent clarity around certain geopolitical risks has been helpful. Specifically, progress in the initial phase of a US-China trade deal and a decisive result in the December
In Credit – 24 FEBRUARY 2020 Macro / government bonds Core bond yields continue to drift lower in a ‘bull flattening’ amid fears about the spread of the COVIC-19 coronavirus outside of China and most recently in Italy and Korea.
Investable bank loans are floating-rate loans made to speculative-grade issuers that theoretically constitute a safer alternative to high yield bonds. Because bank loans pay a floating interest rate, they provide a hedge against rising short- term interest rates. In addition
Cocos in 2020 In our view, growth appears to have reached an inflection point and is showing signs of a stabilisation, central bank policy remains extremely accommodative and recessionary risks are abating. However, we also see a world where corporate
In this issue New year, new decade, we’re off to the races. None of the doom-and-gloom predictions materialized in 2019. Trade tensions did not spiral into out-of-control trade wars, new tariffs did not have a major macroeconomic impact, the US
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,
Give me income….any income. Macro/government bondsConcernsaboutthe spread of a deadly coronavirus from China has amplified market risk aversion in the last couple of weeks. Notably, Asian markets are weaker as is the price of oil. This has provided support for
In Credit
Weekly view from the desk Although some regarded last week’s U.S. non-farm payroll report as disappointing, we regarded it as a solid indicator of what the U.S. economy needs to maintain its trend-like growth. Last year’s monthly payroll average of
The Big Picture 2019 has been a good year with strong returns on a broad range of assets. The global economy has decelerated but we hope policy easing will stabilise things during 2020 (the wing and a prayer). Our favoured
In Credit 13 JANUARY 2020 Macro / government bonds The rise (and subsequent fall) in tensions and combative rhetoric in the Middle East has been the key driver for ‘risk ‘free’ assets such as core government bonds. All in all, bonds
KEY INSIGHTS ■ Economic rebound still fragile as hard data continues to be soft. ■ Dispersion in performance of credit markets likely to continue. ■ Environment for emerging market countries supportive, but headline risks remain.
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 Credit 2 DECEMBER 2019 The Thanksgiving holiday meant it was a shorter and quieter week in core bond markets with little discernible direction. It was also a light week for data releases or political developments. In the US, the Chicago
European high yield spreads are still above their long-term tights, but that doesn’t take quality into account. Are fundamentals robust enough to justify taking more risks?
The size of the fixed-income investment markets has grown considerably over the past decade. Existing investment classes have grown significantly, but also new fixed-income asset classes have become available to investors. The accommodative policy of central banks with low interest
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
USD: No sustained trend visible -> https://www.opiniopro.com/2020/04/erste-group/usd-no-sustained-trend-visible/ #currency #fx #interestrates via @ErsteGroup
Tackling The ‘Unknown Unknowns’: How Active Managers Manage Unforeseen Risks -> https://www.opiniopro.com/2020/04/columbia-threadneedle/tackling-the-unknown-unknowns-how-active-managers-manage-unforeseen-risks/ #active #passive #COVID19 #fundmanager #ETFs #behavioural via @CTinvest_EMEA @CTInvest_US
Policy Tries To Keep Pace With The Pandemic -> https://www.opiniopro.com/2020/04/northern-trust/policy-tries-to-keep-pace-with-the-pandemic/ #CoronaCrisis #COVID19 #EmergingMarkets #debt via @NorthernTrust @NTInvest
Which financial assets are well positioned and which ones are at risk as policy-makers brace for major COVID-19-induced demand shocks? Find out more in this piece.
‘Whatever it takes’: Fiscal Edition -> https://opiniopro.com/2020/03/ubp/whatever-it-takes-fiscal-edition/ #CentralBanks #china #coronavirus #credit #crisis #ECB #fiscalpolicy #fomc #COVID19 via
@UBP_Group
