Investors in sub investment grade (sub-IG) private debt are facing the prospect of their first meaningful default cycle later this year and into 2024. In fact, the lure of comparatively higher yields in the post-GFC (i.e. low rate) environment, along with the promise of no volatility appears to be unravelling.
We were reminded...
Apostle Funds Management’s Steven Spearing provides insight in light of market volatility, geopolitical pressures, the risk of recession and what implications this has on asset managers.
Systematic risk in financial markets is alarmingly high
Strong headline returns across asset classes have masked the concerning level of volatility in the financial system...
Andrew Canobi, Director and Portfolio Manager Franklin Templeton Fixed Income, argues that the debate over the US debt ceiling is a timely reminder of the constraints many developed countries including Australia now face in trying to clean up COVID stimulus measures.
"The US is close to hitting its congressionally mandated...
-Uncoordinated policy actions point to an uneven path towards net zero greenhouse gas emissions. This could mean higher inflation in the short term and a more uncertain long-term growth outlook.
-Managing social costs will likely be key. A more just transition can be achieved by reallocating national income towards labour...
Spreads of credit default swaps (CDS) on US sovereign risk have moved materially higher in the past few weeks.
“We believe a US default is a very low probability event,” says Robert Abad, Product Specialist at Western Asset, a leading fixed income investment manager and part of Franklin Templeton.
Abad says:...
The Federated Hermes Credit Team shares seven pillars of wisdom on the AT1 market
The European Banking Authority is this month holding talks on ways to boost investor interest in the AT1 Market following the collapse of Credit Suisse, which resulted in Swiss Authorities wiping out $17 billion in...
The global financial system nearly collapsed in September 2008 when “globally significant” bank Lehman Bros failed, insurance company AIG (which insured many securities) had to be bailed out and numerous “mergers” were encouraged by panicked regulators.
The system didn’t nearly collapse early this year when Silicon Valley Bank (SVB) failed, along with...
Inflation continues to be a key theme and despite its recent peak, may stick around for longer than expected. In the second installment of a two-part series, Elizabeth Moran looks at high yield managed funds to beat inflation.
Given persistent inflation and increasing commentary for inflation to be higher for...
Pursuing social and environmental impact alongside financial returns
A joint paper from T. Rowe Price by:
Matthew Lawton, Portfolio Manager, Global Impact Credit Strategy
Hari Balkrishna, Portfolio Manager, Global Impact Equity Strategy
David Rowlett, Portfolio Manager, US Impact Equity Strategy
Key insights:
Our dual mandate is to identify companies that are...
