Credit Continuum – August 2018
Our outlook for the month ahead.
Our outlook for the month ahead.
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?
A return to risk-on sentiment with global credit market performance driven by solid technicals.
Differentiation in global credit market performance with positive returns from US high yield and loans, while EM high yield and US IG corporates declined.
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.
A mixed month for global fixed income returns where government bonds, benefitting from a flight to quality, outperformed corporate bonds.
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?
Is direct lending still a viable alternative for investors seeking high yields in an illiquid product?
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.
Incorporating high yield credits into an investment grade portfolio can enhance yield without increasing volatility.
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.