Fixed Income – Page 16
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Asset Class ReportsPrivate debt: Managers take back control
Steady demand for private credit puts lenders in a strong position to negotiate beneficial terms, but discipline in lending remains crucial
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Asset Class ReportsPrivate debt: Sustainable lending set for comeback
Issuance of sustainability-linked paper took a hit in 2022, but managers are now introducing ESG KPIs to incentivise borrowers
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Asset Class ReportsPortfolio strategy – Private debt
The rise in interest rates and inflation throughout 2022 brought traditional fixed-income assets back into focus for investors. The threat of a recession, the pressure on investors to maintain liquidity in portfolios and the ‘denominator effect’, which sees investors over-allocated to unlisted assets after a torrid 2022 for listed equities and bonds, are all facts that would suggest that private debt markets will suffer. However, investors are still backing experienced private debt managers and allocations to the asset class are forecast to grow further in the medium term.
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Country ReportGermany: Financing the Energiewende
German professional pension funds like ÄVWL and BVK are keen to support the energy transition process
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FeaturesFrom soft landing to no landing
Once again, the US jobs market has shown its capacity to surprise forecasters, if not astonish them. January’s non-farm payroll numbers came in way above consensus forecasts, swiftly reversing markets’ dovish take on that week’s central bank actions, with bond markets handing back much of their earlier gains.
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NewsSwedish buffer funds AP1, AP3 report 2022 losses of 8.6%, 5.8%
AP1’s CEO stresses importance of liquidity management; AP3 says emerging markets exposures to be analysed
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NewsKLP portfolio loss just 1.1% in 2022 as long-term bonds, real estate pay
Norwegian municipal pensions provider benefits from 7.1% real estate return
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FeaturesAhead of the curve: Time to automate collateral management
The resilience of financial markets has been tested several times in recent years, from the so-called ‘dash for cash’ at the start of the coronavirus pandemic in March 2020 to the spike in UK Gilt yields in September 2022.
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FeaturesIs the US heading for a soft landing?
Rare though they are in history, a soft landing for the US economy seems to be the consensus forecast, a view aided by news of a sharp contraction in the Institute of Supply Management (ISM) Services Purchasing Managers index in December. The jobs market also looks like it is slowing down and there are signs of a cooling off in wages, with lower-than-expected average hourly earnings reported in December’s non-farm payroll report.
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NewsNorway SWF loses 14% on assets in 2022 but stages a rebound in January
For first time, NBIM outperforms in a loss-making year
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NewsIndustriens 17.9% infrastructure return mitigates negative 2022 result
Danish pension fund says renewable energy infrastructure assets rose in value during the year
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NewsNordic pension funds tilt equity portfolios to value amid high inflation
Persistent high inflation could cause headaches for some providers, due to inflation-linked benefits - but hopes are high for slower price rises
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NewsERAFP’s €300m equity mandate to be benchmarked to Scientific Beta’s climate index
Plus: Institutional investor seeks manager for €70m corporate bonds brief
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NewsInarcassa ups bonds, cuts equities in new strategy
The scheme has also decided to integrate a sustainability element in its latest asset allocation strategy
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Asset Class ReportsAsset class report – Fixed income
Last year was the worst in recent decades for both government bonds and credit, with portfolio returns worse than most professionals have experienced in their careers. But is the tide finally shifting as inflation starts to moderate and terminal policy rates are in sight? In any case, geopolitical risks and inflation are not set to go away, and recession will inevitably take a toll on corporate issuers.
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Asset Class ReportsFixed income: Transition plans and green bonds
Should companies publish climate plans before they can issue green bonds?
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FeaturesFixed income, rates & currency: Inflation strengthens its grip
Whereas news of the hostilities in Ukraine may be losing their potential to shock and dislocate the world economic order, inflation news has maintained its powerful hold over financial markets across the world throughout 2022, with many economies recording their highest inflation levels for decades.
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Asset Class ReportsFixed income: Paradigm shift for investors
Credit is looking more attractive on a risk/reward basis for new investment, but the factors that led to the 2022 volatility have not disappeared
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NewsIlmarinen adds foreign property and corporate bonds to climate goal
Finland’s number two pensions insurer adds new asset types to climate road map published last year
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Special ReportProspects 2023: Does zero China make sense?
Many investors are avoiding the People’s Republic, but they would do well to look at the reality
