Azhar Hussain, Head of Global Credit at Royal London Asset Management, gives his views on where the high yield markets are heading in 2023 and how the story will be all about the recession and the shape of the default cycle.....
In some credit sub-asset classes, such as US high yield, many pure passive products and active managers have historically lagged the leading benchmarks used by institutions. A happier medium could be an efficient beta approach with tight tracking and a fundamental factor tilt mitigating some biases that can hamper long-term returns.....
Pinebridge Head of Credit and Global Fixed Income, Steven Oh, argues that valuation cracks will develop in the months ahead, and he is looking to move from defensive to offensive when opportunities emerge.......
"An environment that continues to rattle risk markets should favor carry asset classes like credit, with a higher proportion of stable returns coming from coupon income, which can act as a buffer against volatility," argues two managers.......
Increased yields on liquid high yield corporate debt are encouraging some investors to revisit the space, but they need to pay careful attention to sector and company selection and liquidity issues, says Alfred Berg´s Henrik Emil Hoyerholt and Kristoffer Sonnervik......
With a goal to generate decarbonization-related alpha, one manager seeks to find companies with the potential to be early adopters in the adjustment to a carbon-neutral reality. Thus generating the outperformance that can accrue to first movers.........
Azhar Hussain, Head of Global Credit at Royal London Asset Management, argues that global high yield credit should have wider appeal, and that the front end of the market offers the best protection from the twin threats of inflation and recession......
Alternative fixed income strategies demonstrate great variety, both in terms of spread, risk, capital charge, liquidity, duration matching and ESG factors. This excellent paper compares different categories within the alternative fixed income spectrum.......
We spoke to Rens Ramaekers, portfolio manager in the European ABS and Mortgages team, at Aegon, to find out why Dutch mortgages offer a yield premium, how to quantify their liquidity and valuation risks and why the credit risk has historically been so low.....
Heightened market volatility has led to misconceptions about credit, in Pimco´s view. They dispel four of them here......
