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High Yield: Harvesting Income

High Yield: Harvesting Income

🕔10:11, 21.Jun 2022

For most risk assets, total return is achieved predominantly via capital price return, but not in high yield. Over long-term periods, income tends to drive the bulk of the total return for high yield bonds. In fact, over 100% of

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Quarterly macro and market insights

Quarterly macro and market insights

🕔14:12, 27.May 2022

Moderating global growth as policymakers grapple with persistent inflation Global economic growth looks likely to continue in 2022, albeit at a more modest pace. The COVID-19 pandemic does, however, add uncertainty to the outlook, as evidenced by the recent emergence

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High yield bonds in DC pension strategies

High yield bonds in DC pension strategies

🕔12:19, 26.May 2022

High yield bonds have become a mainstream asset class for many institutional investors. Historic returns are impressive, particularly on risk-adjusted measures, and an allocation to high yield bonds can add value to an overall portfolio. For defined contribution (DC) pension

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Three factors favoring High Yield

Three factors favoring High Yield

🕔10:17, 11.May 2022

Heading into 2022, the high yield bond market was a tale of two halves. On one hand, solid company fundamentals, balanced technicals and the ongoing economic recovery painted a supportive backdrop. On the other, valuations were historically rich, with tight

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5 reasons to invest in high yield corporate bonds in the current market environment

5 reasons to invest in high yield corporate bonds in the current market environment

🕔08:35, 29.Apr 2022

1. High yield is a growth sensitive asset class: The high-yield market has historically produced positive results over a full cycle, but it tends to do particularly well during the recovery phase of the business cycle as default rates fall,

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The Road to March

The Road to March

🕔14:57, 14.Mar 2022

Fixed Income Perspectives Less than two months into the new year, global central bank policy has turned more hawkish. The Bank of England hiked rates 25 basis points (bps) in early February, while the European Central Bank announced it would

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Rate hikes and inflation taming could prove a tough balancing act for the Fed

Rate hikes and inflation taming could prove a tough balancing act for the Fed

🕔13:42, 14.Feb 2022

Fixed Income Perspectives Bond Market Outlook Global Rates: Yields to edge higher driven by ongoing inflation worries and 2022 rate-hike expectations Global Currencies: U.S. dollar to remain range-bound as market balances global Covid concerns, hawkish central bank policies Investment Grade:

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2022 High Yield Outlook: Divergence Ahead?

2022 High Yield Outlook: Divergence Ahead?

🕔16:23, 26.Jan 2022

After a challenging 2020, the high yield market saw rapid fundamental improvement in 2021 and it staged an unprecedented recovery. As we enter 2022 and provided the economic recovery continues, we maintain a reasonably positive outlook on the high yield

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A tough week for Turkey

A tough week for Turkey

🕔10:38, 5.Jan 2022

Macro / government bonds All three major central banks making decisions last week have demonstrated that they no longer regard the downside risks to economic activity over the coming months as outweighing the need to address inflation pressure.

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Treasury yields rise as markets await the Fed

Treasury yields rise as markets await the Fed

🕔16:42, 27.Dec 2021

The U.S. Treasury yield curve steepened and spread sectors rallied strongly last week, as fears over the COVID-19 Omicron variant eased and inflation data came in-line with expectations. The Federal Reserve holds its last meeting of 2021 on Wednesday, where

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Quarterly macro and market insights

Quarterly macro and market insights

🕔08:22, 10.Dec 2021

Positive but slower global growth is meeting with greater inflation pressures   The global economy maintained its Growth potential is on track to outpace pre-pandemic times positive overall trajectory, though economic indicators grew more mixed. Returns across fixed income were mostly

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Playing second fiddle

Playing second fiddle

🕔09:50, 25.Nov 2021

US FIXED INCOME 2022 OUTLOOK That’s how the 2022 economic forecasts feel when compared to 2021. For ’22, we see real growth running about 4%, or two times trend. That’s typically great performance, but when you’re coming off a phenomenal

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Mogelijkheden vinden van stressed en distressed krediet gedurende de economische cyclus

Mogelijkheden vinden van stressed en distressed krediet gedurende de economische cyclus

🕔10:18, 3.Nov 2021

Nu het wanbetalingspercentage aan beide kanten van de Atlantische Oceaan uitzonderlijk laag is, zouden beleggers terecht kunnen denken dat de markt voor distressed kredieten zeer gematigd is. Maar er zijn strategieën die zelfs in de huidige omgeving kansen kunnen vinden

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Why is it a good time to allocate to high-yield markets via CDS indices?

Why is it a good time to allocate to high-yield markets via CDS indices?

🕔10:58, 1.Oct 2021

CDS indices outperformed bonds and behaved better in times of stress thanks to better liquidity High-yield CDS indices have outperformed the high-yield bond market over the long term regardless of the interest rate exposure, as illustrated in Figure 3. This

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High yield verliest glans

High yield verliest glans

🕔13:20, 30.Sep 2021

Ongekende monetaire stimulansen zorgen voor sterk herstel In het eerste kwartaal van 2020 werden de financiële markten wereldwijd opgeschrikt door de escalatie van de corona-uitbraak tot pandemie. Zorgen over de economische impact van deze pandemie leidden tot sterk dalende koersen

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Fixed Income Strategy September 2021

Fixed Income Strategy September 2021

🕔10:46, 27.Sep 2021

Strategy Summary The FIXED INCOME MONTHLY provides a forward-looking summary of the medium-term views from the Fidelity Fixed Income team. Our investment approach is multi-strategy, with portfolio managers given clear accountability and fiduciary responsibility for all investment decisions in a

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Really low real yields.

Really low real yields.

🕔14:52, 9.Sep 2021

In Credit  AUGUST 2021 As we start a new month, we can reflect on another better week and month for core government bonds. US yields fell by around 25bps in July. The fall was led by declining real yields, which

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High Yield Market Remains Attractive, but …

High Yield Market Remains Attractive, but …

🕔09:46, 25.Aug 2021

Various Push-Pull Factors Argue for a Watchful Investment Approach: The U.S. and global high-yield markets experienced a strong second quarter. Year-over-year trends in corporate fundamentals based on first-quarter earnings released in the …

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Why should investors strategically allocate to high-yield CDS indices?

Why should investors strategically allocate to high-yield CDS indices?

🕔16:15, 31.May 2021

Investors can choose between two different types of instruments when investing in the corporate high-yield market: traditional high-yield bonds and high-yield CDS indices. In this white paper, we shall look at the performances of the global high-yield bond market since

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High Yield Debt Can Boost Income And Return Potential Amid Low Yields

High Yield Debt Can Boost Income And Return Potential Amid Low Yields

🕔12:47, 29.Apr 2021

Downside risk management is crucial.  Volatility and low yields are likely to persist over the next few years as the global economy recovers from the shock of the coronavirus. Navigating this environment will be difficult, particularly as returns from equities

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Volatility in rates little seen in HY so far

Volatility in rates little seen in HY so far

🕔09:31, 27.Apr 2021

Volatility in interest rates year-to-date has unevenly impacted credit markets. Investment grade credit (IG) weakened in sympathy with sovereign yields, especially in high quality and long duration paper. IG bonds were down -3.6% in the U.S. year-to-date, and -0.5% in

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High-yield bonds – Everything is relative!

High-yield bonds – Everything is relative!

🕔13:25, 3.Mar 2021

Investors can still find value in the European high-yield bond market even after a more than volatile 2020 in which risk premiums fell. While the starting yield may now look much less attractive, high-yield bonds continue to …

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Water, Frontier Debt and more in our Best Read of Last Week

Water, Frontier Debt and more in our Best Read of Last Week

🕔12:06, 4.Feb 2021

OpinioPro readers found the BNP Paribas AM article the most interesting this week. The article discusses how the switch of many economies ‘’from a depletive to a sustainable model created a wide range of investment opportunities in many areas including water’’. The three main water-related investing …

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Glimpses of light at the tunnel’s end

Glimpses of light at the tunnel’s end

🕔16:03, 25.Jan 2021

After a rollercoaster 2020 for European high yield markets, 2021 looks set to be more stable. Fears of high levels of corporate defaults have proved unjustified, allowing high yield to rebound in 2020 and setting the scene for the coming year. While the second Covid-19 wave, and the new variant, are weighing on recovery, once vaccinations bring the virus under control a degree of normality …

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Euro high yield: the opportunity today

Euro high yield: the opportunity today

🕔09:25, 20.Jan 2021

Euro high yield: the opportunity today Credit Outlook The upheavals of 2020 have brought structural changes in the euro high yield (EHY) bond market. So, what has changed, what still applies, and what role can this sector play in European

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T. Rowe Price – Webinar – U.S. High Yield Strategy Update

🕔17:00, 14.Jan 2021

Webinar – U.S. High Yield Strategy Update Kevin Loome, CFA®, portfolio manager of the U.S. High Yield Bond Strategy and Gregor Dannacher, CFA®, portfolio specialist, share insights on how they are responding to these rapidly changing markets and uncovering new

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#HighYield – Research Highlights

#HighYield – Research Highlights

🕔10:13, 12.Jan 2021

#HighYield   On the 4th of January, Columbia Threadneedle Investments published a new edition of their monthly report “In Credit”, this time titled as: “Here we go again”. Speaking about High Yield, Columbia Threadneedle states that technical values remain positive

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2021 Outlook: High Yield And The Road To Recovery

2021 Outlook: High Yield And The Road To Recovery

🕔09:22, 29.Dec 2020

Credit markets weathered a turbulent year in 2020 as the Covid-19 outbreak resulted in economic shutdowns, plummeting growth and volatile markets. Against this backdrop, fundamentals deteriorated, downgrades skyrocketed and default activity increased. After one of the quickest bear markets in

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Uncovering Opportunities in Noninvestment‑Grade Credit

Uncovering Opportunities in Noninvestment‑Grade Credit

🕔09:50, 18.Dec 2020

T. Rowe Price Insights on Global Fixed Income Credit analysis can reveal value in bank loans, high yield bonds High yield bonds and bank loans (or leveraged loans) represent two forms of noninvestment‑grade credit exposure. Both sectors have various strengths and risks

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Elections and a vaccine: Implications for fixed income investors

Elections and a vaccine: Implications for fixed income investors

🕔14:50, 11.Dec 2020

Investment Insights   The US election results and the announcement of a potential COVID-19 vaccine from Pfizer have been pivotal events in markets, initially providing a substantial boost to risk assets. Mixed economic data and a rapidly rising rate of coronavirus

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Finding Opportunities After the Rebound

Finding Opportunities After the Rebound

🕔15:15, 27.Nov 2020

T. Rowe Price Insights on Global Markets Our portfolio managers see selective potential in a range of asset classes. Even for those of us who saw reasons for hope this past spring, the market’s resilience in the face of the

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Vaccines shape 2021 outlook

Vaccines shape 2021 outlook

🕔09:26, 24.Nov 2020

"We still like high yield for income. On a tactical horizon, we strongly prefer high yield for its income and more room for spread tightening. We are neutral on IG and underweight emerging market debt."

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COVID-19 Has Transformed the U.S. High Yield Opportunity Set

COVID-19 Has Transformed the U.S. High Yield Opportunity Set

🕔14:57, 20.Nov 2020

T. Rowe Price Insights on Fixed Income Downgrades and defaults have had a major impact on the asset class Record volumes of credit downgrades and a sharp spike in defaults have reconfigured the U.S. high yield bond market in the

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UBP – Webinar – High Yield Valuation Educational Webinar

🕔09:00, 18.Nov 2020

Webinar – High Yield Valuation Educational Webinar 1 HY: fundamentals and valuations 2 Why GHYS is uniquely positioned for the future Programme 09.00 AM High Yield: Fundamentals and current valuations Bernard McGrath / Senior Fixed Income Specialist; UBP How expensive

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More fallen angels ahead in Europe?

More fallen angels ahead in Europe?

🕔15:00, 16.Nov 2020

“Global default rates are rising and likely to continue into 2021. But we think the full impact may be muted by the significant fiscal and monetary intervention seen from governments and central banks.”

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Flexibility Is Invaluable During Difficult Periods

Flexibility Is Invaluable During Difficult Periods

🕔11:22, 6.Nov 2020

T. Rowe Price Insights on Global Fixed Income Riskier, less liquid securities can bring substantial benefits. When seeking to generate steady bond income during turbulent times, a little flexibility can go a long way. The freedom to invest in a wide

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COVID-19 has transformed the US high yield opportunity set

COVID-19 has transformed the US high yield opportunity set

🕔07:46, 20.Oct 2020

Credit Outlook  Downgrades and defaults have had a major impact on the asset class Record volumes of credit downgrades and a sharp spike in defaults have reconfigured the US high yield bond market in the wake of the coronavirus. This

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Implications of the global debt explosion

Implications of the global debt explosion

🕔09:48, 8.Oct 2020

European Gazette  Global debt was at an unprecedented level before Covid-19. With the subsequent policy response injecting liquidity into most parts of the world economy, the debt predicament is set for a worse path. We explore the implications for sovereigns,

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Welcome to a new high yield universe

Welcome to a new high yield universe

🕔07:48, 7.Oct 2020

European Gazette / Summer 2020 As we started Q4 in 2019, we saw the economic cycle coming to an end. We were slightly perturbed that markets wanted to be quite bullish as Q3 numbers showed firms meeting and beating expectations.

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Softening high-yield fundamentals signal caution following Q2 rebound

Softening high-yield fundamentals signal caution following Q2 rebound

🕔07:39, 27.Aug 2020

Following a historic plunge in Q1, US high-yield corporate bonds delivered strong gains in Q2. The intervention of governments and central banks provided unprecedented support for global financial markets and bolstered investors’ appetite for risk. The market showed technical strength

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High yield update

High yield update

🕔11:36, 13.Aug 2020

High-yield bonds often deliver strong returns following a period of crisis – why is that and will it happen in the wake of COVID-19? Due to a higher-risk nature of its constituents (including the greater risk of default), the high-yield

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Risk-averse market tone proves pervasive

Risk-averse market tone proves pervasive

🕔09:25, 6.Jul 2020

U.S. Treasury yields ended the week modestly lower, led by longer maturities. Markets appeared focused on escalating coronavirus concerns, despite generally stronger U.S. economic data. Rising U.S. virus cases are stoking fears of another lock down and associated slowing in economic

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What shape recovery?

What shape recovery?

🕔13:16, 29.Jun 2020

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 …

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High Yield Issuance Sets Records Amid Optimism

High Yield Issuance Sets Records Amid Optimism

🕔09:23, 25.Jun 2020

Driving optimism in June have been a variety of better-than-anticipated economic reports. Most notably, nonfarm employment rose by 2.5 million, leading to a downtick in the unemployment rate. ISM manufacturing and non-manufacturing surveys each moved up in May. And most

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ESG Deepens Insights in European High Yield

ESG Deepens Insights in European High Yield

🕔12:51, 11.Jun 2020

KEY INSIGHTS ESG factors are incorporated into the research process, serving as an important input into decision‑making. The growing importance of ESG in Europe is having a trickle‑down effect on companies. Seeing a greater awareness of ESG among high yield companies,

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What asset classes should investors consider in times of great market uncertainty?

What asset classes should investors consider in times of great market uncertainty?

🕔09:15, 1.Jun 2020

Executive Summary The coronavirus crisis has understandably caused a great deal of unrest on the financial markets. This article examines the opportunities and threats at times when share prices have fallen sharply in a short period of time, spreads have

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Why now for US Short Duration High Yield Bonds?

Why now for US Short Duration High Yield Bonds?

🕔11:48, 20.May 2020

Strategy update The volatility of recent months pushed credit spreads well wide of historic norms, peaking around mid-march at levels last seen during the 2008/2009 Credit Crisis. In the face of this market turmoil, the broad US high yield market

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Investing in an uncertain world

Investing in an uncertain world

🕔13:53, 1.May 2020

The Big Picture Is this a buying opportunity or the half-way stage in a larger slump? The truth is we don’t know, so we have constructed a range of scenarios that see the S&P 500 anywhere between 1400 and 3000 in 12

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Prepare for ZIRP: What Letter Shape is Your Recovery?

Prepare for ZIRP: What Letter Shape is Your Recovery?

🕔09:08, 27.Apr 2020

While much uncertainty remains, one aspect of the COVID-19 market shock is clear: The Fed will not stand in the way of the economic recovery. By the end of March, the COVID-19 global pandemic had a deep and profound effect on virtually

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Revisiting the global high yield outlook in the wake of the COVID-19 pandemic

Revisiting the global high yield outlook in the wake of the COVID-19 pandemic

🕔14:39, 24.Apr 2020

Global HY markets sold off aggressively between February and March in response to the COVID-19 outbreak, the oil price war and the liquidity freeze in some markets. An analysis of past peak-and-trough episodes in the US HY market shows that

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