• As the earnings season gets underway in early January, we look at 2021’s bumper level of bank debt issuance, in particular from Bank of America, JP Morgan and Citigroup, which have all seen big increases in deposits. Banks look set to benefit from rising rates this year, but also from their historically large capital buffers, diverse funding levels and central bank liquidity backstops and offer attractive valuations.
  • ABS issuance may have been on a downward trajectory since the global financial  crisis but there is a clear complexity and illiquidity premium for investors.
  • In the growing green bond market, increasing sovereign issuance is a welcome development to help set and improve standards on transparency. Corporate issuers continue to innovate, although not without the occasional controversy, as in the case of the Indian conglomerate the Adani Group.

Portfolio Strategy - Fixed Income