Despite the focus on credit spreads, yield has proven to be a more reliable indicator of high yield market attractiveness. With a strong correlation between starting yield and five-year forward returns, and a historically high-yielding environment coupled with low projected default rates, the high yield asset class is well-positioned...
From Guy Stear, Head of Developed Markets Strategy at the Amundi Investment Institute
Three factors that have contributed to the shift in sentiment
▪ Market reversal: Global stocks suffered big losses, with Japan's Topix index racking up its largest one-day drop in more than three decades. European and US stocks also fell,...
Janus Henderson Investors Portfolio Manager Daniel Graña notes that the most assertive of Donald Trump's economic proposals could range from being unhelpful to harmful for emerging markets.
Key takeaways:
The tendency toward deglobalisation could accelerate if Trump is not merely using tariff proposals as a negotiating tactic with trading partners.
...
By RJ Gallo, Senior Portfolio Manager, Fixed Income at Federated Hermes
With the Fed expected to begin its easing cycle later this year, bond markets appear poised to generate income to a degree not seen since before the 2008-09 financial crisis.
While expectations around the size of cuts this year have...
Key points:
Are investors asking the right questions?
Rate cuts are not a panacea for broken businesses.
What really matters are fundamentals.
Are these the right questions?
Following the inflation ambush in 2022, elevated inflation prints have fallen, as has the volatility of inflation, which has whipsawed investors.
In late April, I...
From Matthew Macreadie, Executive Director, Credit Strategy and Portfolio Management - IAM Capital Markets
Australia’s inflation problems may see 50bps of further monetary tightening, but for investors it really depends on where you are on the credit pendulum.
Given Australia’s credit market is largely investment-grade, higher interest rates are...
By Paul Benson, Head of Systematic Fixed Income at Insight Investment
We believe investors should consider locking in high yield bond yields ahead of the rate-cutting cycle.
Some investors tell us they are waiting for credit spreads to widen, but we offer three reasons this could be the wrong call.
Yield is...
By Mark Humphery-Jenner, UNSW Sydney
ANZ is being investigated by the Australian Securities and Investments Commission (ASIC) amid serious allegations the bank manipulated markets when it facilitated a A$14 billion sale of government bonds in April last year.
ASIC has now publicly stated it suspects ANZ broke the law. Speaking to...
By Marion Le Morhedec, Global Head of Fixed Income at AXA IM Core
During the past decade, the green bond market has seen exceptional growth.
So far this year, there’s already been $270 billion worth of issuances with 41 new issuers coming into the market this year, pushing the global market...
Nuveen's CIO, Saira Malik, shares her key takeaways on the weight of the upcoming US election and how this is affecting markets. Saira also explores recent economic data and the impact this is having on credit investing.
US election and economic landscape
President Biden's exit from the U.S. presidential race...
