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Tag "high yield"
Low Economic Volatility May Continue Supporting 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
2020 outlook: on a wing and a prayer
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
Supply begets demand
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
Will the Reflation Theme Continue in 2020?
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.
Rising Dispersion Creates Opportunities in Loans and High Yield
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
Slowdown in the subcontinent
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 relative yield
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?
High yield in a broad perspective
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
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
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
Uitgelicht
Global Asset Allocation Views Q1 2020 -> https://www.opiniopro.com/2020/01/jp-morgan/global-asset-allocation-views-q1-2020/ #AssetAllocation #credit #equites #Equities #FixedIncome via @JPMorganAM
Zo was het vorig jaar! #aftermovie #AssetAllocationAwards
https://vimeo.com/321963939
Economic resilience, Fed and elections to drive US markets in 2020 -> https://www.opiniopro.com/2020/01/amundi/economic-resilience-fed-and-elections-to-drive-us-markets-in-2020-2/ #consumption #election #monetarypolicy via @Amundi_ENG
The US federal reserve’s ‘whatever it takes’ moment has arrived -> https://www.opiniopro.com/2020/01/ubp/the-us-federal-reserves-whatever-it-takes-moment-has-arrived/ #AssetAllocation #centralbank #credit #ECB #Equities #FED #USA
