All High Yield Bonds articles – Page 2
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FeaturesIPE Quest Expectations Indicator: June 2023
Continued loud bickering between the Wagner Group and the Russian army is protecting Putin from both, worsening the outlook for peace, while there are multiple signs that military supplies are approaching exhaustion. The coalition supporting Ukraine is stronger than ever, showing increasing willingness to provide military aircraft. Yet the offensive expected in February has not started. In the US, Florida governor Ron DeSantis is damaging his position with an unproductive row with Disney, while Trump has moved closer to a prison term. Gas consumption in the EU is falling faster than expected, due to efficiencies like heat pumps, changeover to electricity and solar panels. Macron scored nicely by sponsoring the participation of Zelensky at the Hiroshima G7; Sunak failed to centre political attention on China.
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Asset Class ReportsPortfolio strategy – Fixed income
Last year ushered in a new era for global fixed income and credit markets. It was the worst, in terms of returns, for bond investors in years, but it signalled a regime change. Investors need to be prepared for structurally higher inflation and rates, as well as higher volatility. But for fixed income managers, this is an environment where value is easier to find. Our report looks at this new beginning for fixed income investors, and at how selectivity has become key in the high yield and loan markets.
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Asset Class ReportsFixed income – A year for selectivity in high yield and loans
Patience might prove the be the watchword for the rest of 2023 in high yield
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Asset Class ReportsFixed income – New beginning for bond investors
A painful 2022 for fixed income means attractive opportunities and a possible normalisation in risk and return
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FeaturesIPE Quest Expectations Indicator May 2023
Russian air superiority over Ukraine is coming to an end due to lack of equipment. Destroying civilian targets is counterproductive and consumes ammunition. Bakhmut is eating into Russian resources, while Ukraine is being re-armed. History teaches that better technology, rather than numerical superiority, wins wars. But even a lopsided Ukrainian win would not automatically mean peace.
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Opinion PiecesAustralia: Super funds shift to fixed income
With fear of recession in Australia and globally, superannuation funds have gone into defensive mode. Cash and liquidity are two key considerations for CIOs, and some are waiting to take advantage of attractive market opportunities.
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FeaturesAhead of the curve: Introducing the concept of a carbon risk-free curve
As global investors and companies progress towards their net-zero emissions targets, the concept of a carbon risk-free curve becomes increasingly relevant within the fixed-income market. In our view, this curve should provide a reference for evaluating the risk levels of bonds in relation to their issuers’ CO₂-equivalent (CO₂e) emissions and can therefore help investors to assess the impact of changes in CO₂e emissions on the yield spread of fixed-income bonds.
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NewsEmergency rules trigger AT1 bonds write down in UBS/Credit Suisse deal
Pension funds holding AT1 bonds, also referred to as CoCo bonds, can suffer losses as a consequence of the decision taken by FINMA
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NewsInarcassa hedges equity exposure, resumes private markets allocations
According to the new strategic asset allocation for 2023, Inarcassa is increasing its allocation to bonds by 3%, while reducing equities by 1.5%
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NewsDutch pension fund tenders €1bn mandate via IPE Quest
Plus: A pension fund based in Switzerland is looking for an investment product that invests in long maturity Swiss non-government bonds
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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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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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FeaturesIPE Quest Expectations Indicator March 2023
The next Ukrainian offensive will be in April at the earliest, as modern tanks will have arrived by then. US Republican pushback of ESG and climate-related investments are a new bone of contention in relations with the EU, already strained by the Trump presidency, and a bad sign for US-EU co-operation on China policy, an issue Japan seems to be ducking successfully. Aided by a soft winter, EU energy concerns have become quite manageable.
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FeaturesHigh yield bonds: do your homework
Last year, European bond markets were struck by a toxic a combination of geopolitical, economic and market tensions. The picture has improved with the dawning of 2023, although the markets will continue to experience bouts of volatility and uncertainty will persist. High yield is back on the agenda, but selectivity and careful analysis will be key in identifying the right opportunities.
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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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NewsGerman church schemes opt for passive high-yield strategy, exclude ETFs
The pension funds have switched to indexed products, partnering with Insight Investment and steering away from its active high-yield managers
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NewsBond volatility demands UK schemes prepare for urgent action, says Aon
The situation has arisen because the bond market has repriced rapidly
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Asset Class ReportsCredit: Inflation and the bond markets
Risks look likely to be building in credit as central banks wreak collateral damage on economies in their bid to tame inflation
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FeaturesFixed income, rates & currency: inflation battle in full swing
As we reach the midpoint of the year, there is little sign that the second half of 2022 will be any less turbulent than the first. The conflict in Ukraine slogs on – a destructive war of attrition, pain and fear. The repercussions are huge, global and unpredictable, be they surging energy prices or impending, but acute, shortages of basic foodstuffs, or of semi-conductors, so vital to 21st century life.
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NewsDutch pension funds increase investments in high yield
On average, pension schemes in the country now have invested 11% of their fixed income allocation in the asset class
