Credit Continuum – July 2019
Our outlook for the month ahead.
Our outlook for the month ahead.
Against a backdrop of increasing global uncertainty, many are concerned about an economic scenario that puts widespread pressure on credit ratings.
Risk-on sentiment dominated for the month, even as ongoing trade tensions and geopolitical concerns persisted
As the US/China trade war continues to heat up, can idiosyncratic risks in some sectors benefit others?
Will upcoming European elections impact broader market sentiment?
Risk-off sentiment dominated for the month of May on the back of geopolitical concerns such as increasing Sino-American trade tensions, Mexican-American trade tensions, Iran-US sabre rattling, British PM Theresa May’s resignation and the potential for a no-deal BREXIT
Global market fixed income, with the exception of loans, continued its positive streak this month led by longer duration Treasuries and investment grade corporates
Please click to view our latest Macro Outlook from Director of Product & Investment Strategy, Erick Muller.
Recent research trips to India and Indonesia provide valuable insight ahead of upcoming elections
How might investors access the benefits of private debt whilst avoiding the restraints incurred by traditionally illiquid assets?
Underlying fundamentals remain solid despite recent price weakness
What key themes are likely to impact socio-political and economic developments?
Private Debt Portfolio Managers Eric Green and Jeff Youle reiterate their conviction in the asset class
As increasing macroeconomic and geopolitical risks lead to rising volatility, where do we see the main opportunities and challenges for credit markets in 2019?
UK private debt Co-Heads Grant Davidson and John Clifford, discuss the lending landscape in the UK lower mid-market
Fabrizio Pagani offers his insights from the G20 summit
A segment of the investment grade market has leverage multiples more in-line with high yield.
Fabrizio Pagani offers his insights into the current political situation surrounding Italy’s budgetary challenges and its relationship with the European Union.
Seeking stable returns in most market conditions.
Can socially responsible investing enhance returns in corporate credit?
Portfolio Manager Warren Hyland discusses how he has sought to forge a leading path in emerging market short duration corporate debt.
The country’s geographical location and NATO membership could prove the key to ensuring the country’s long-term stability
The government faces an ongoing battle for reform
With growing pressures in the direct lending market, is the asset class still a viable alternative for investors seeking higher yields?
As rates move higher in the US, and are likely to follow suit in Europe, can credit investors gain exposure to attractive returns with limited duration risk?
Recent weakness in EM belies underlying fundamental strength in a maturing asset class
As volatility rises and the beta rally draws to a close, how can investors seek to strike a balance between return maximisation and drawdown protection?
We believe the solid technical backdrop continues to underpin the asset class.
We believe Sustainability and Responsible Investing are becoming increasingly important for investors. See how we view this key topic.
Following the recent sell off in EM corporate bonds, has the short duration segment reached an attractive entry point?
As we enter the latter stages of the economic cycle, we expect to see increasing dispersion of returns across high yield and loans.
How can credit investors seek to have the right exposure at the right time to maximise their return potential, minimise risk and dampen volatility?
As base rates move towards more normalised levels, where can fixed income investors gain protection from rising rates and source attractive returns?
With deteriorating fundamentals in the sovereign universe, should investors consider increasing their allocation into corporates?
Rates and passive investment strategies create challenges for fixed income investors, corporate credit continues to provide attractive opportunities.
Mike McEachern, Portfolio Manager and Head of Public Markets, discusses the benefits of a multi-asset approach to credit investing.
Analyst View – the latest insights from our credit analysts
What does 2018 have in store for corporate credit markets?
What does the re-election of Xi Jinping mean for China’s political and economic outlook?
Why are US high yield spreads tighter this year when the market has experienced net mutual fund outflows year-to-date?
What does the final few months of 2017 have in store for global corporate credit?
With its second downgrade in less than six months, should investors be concerned about China’s creditworthiness?
Declining credit quality in the investment grade corporate universe means the need for bottom-up credit research is now more important than ever.
An allocation into direct lending can offer insurers with a diversified source of higher, less volatile returns over a longer-term time horizon.
Accessing an underinvested asset class against a backdrop of improving growth can provide investors a better risk-reward profile than developed market credit.
It may seem strange to consider Emerging Markets as a potential safe haven, but arguably, that is now the view of many looking to mitigate political uncertainties.