There are 33 item(s) tagged with the keyword "credit".
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Why the case for owning IG as an income asset has rarely been stronger
Jenna Barnard, Head of Global Bonds, explores why longer-dated government bonds have struggled during 2025 despite central bank rate cuts.
With credit spreads hovering near generational lows, Alexander Pelteshki, Investment Manager, breaks down the current state of global credit markets in the latest edition of Strategic Thinking Out Loud. He explores the drivers behind the rally and outlines a cautious yet opportunistic approach to managing risk and yield in fixed income portfolios.
As we reach the middle of 2025, we face a set of circumstances that are both fairly unique and strangely familiar. Think ‘bond vigilantes’, conflict in the Middle East, US deficit concerns, widespread higher fiscal spending and a UK Labour Government. Sound familiar?
US trade policy uncertainty has led to a sharp rise in yields for high yield bonds. Fixed Income Portfolio Managers Brad Smith, Brent Olson and Tom Ross consider what current yield levels might mean for investors and whether it may be an opportune time to consider an increased allocation.
There’s a misconception that the CLO market is heavily skewed towards a particular sector or region, concentrating risk. Portfolio Managers Denis Struc and Ian Bettney challenge this myth and demonstrate that its composition is actually advantageous.
The macroeconomic outlook suggests moderating growth and controlled inflation. However, uncertainty has risen post-US election, with the new administration's policy agenda still unclear. Proposed trade tariffs may initially boost US inflation but could dampen growth modestly. Global impacts may skew negative, widening divergences between the US and Europe, China, and others.
Corporate bonds performed well in 2024, but government bond volatility dampened overall fixed income returns. Central Banks fell short of market rate-cut expectations, with resilient economies, especially in the US, and political upheaval fueling turbulence. Will 2025 bring similar challenges?
Investor allocations to bonds have been low in recent years with many investors preferring to hold cash or money market funds instead. In the period of low/rising bond yields and high deposit rates, this made perfect sense. Now, as we enter the next phase of the interest rate cycle, this is no longer the case.
Displaying: 1 - 10 of 33