Fixed Income
Prime opportunities within direct lending
Within the direct lending universe M&G Investments believes the most attractive opportunities lie within the more conservative end of the mid-market. We explore why this is likely to be the case and how conditions within the asset class have changed....
Pure Play Bank Risk Sharing and Regulatory Capital
Whitecroft argue that bank risk sharing (also known as SRT) could deliver returns as good or even better than high yield or leveraged loans, but with a portfolio of mainly investment grade assets. The market is booming but deal selection is key....
Private credit: Europe vs the US
Investors’ appetite for private credit shows no signs of abating, with estimates suggesting it will double in value over the next five years. But within the asset class, choices need to be made. With Europe and the US dominating almost 90% of the market, what are the key differences between these regions and where should investors set their focus?
Small caps riding the AI wave
The rapidly spreading use of artificial intelligence is even further and more dramatically intensifying the demand for powerful semiconductor chips. But how does the increased use of artificial intelligence impact the semiconductor sector and what risks and opportunities does it provide to small-cap companies in particular?
Growing investment opportunities amid bank deleveraging trend
As banks double-down on capital relief and balance sheet optimisation, this is creating an attractive and unique entry point for investors to gain exposure to the core, yet ‘harder-to-access’, parts of bank balance sheets and earn potentially attractive risk-adjusted returns.....
Gaining exposure to surging military spending
With Finland and Sweden joining Nato, continued war in the Ukraine and tensions in the middle east, weapons are in high demand. While they are a controversial topic, investors are carefully evaluating obvious ESG concerns as they consider the defence sector and how to access it.....
Aegon Asset Management´s alternative credit platform – Yield pickups across the risk spectrum
The Dutch insurance giant continues to add innovative strategies to an already impressive range of alternative credit products. We spoke to Frank Drukker and Peter Slob to find out what they are bringing to the Nordics......
Transaction Cost Analysis: Has Transparency Really Improved?
Transaction cost analysis (TCA) awareness is on the rise, with equity and bond investors increasingly recognising trading as a key area of leakage.....
Defining impact investing – evidence, measurement and positive outcomes
As impact investing is picking up increasing interest amongst Nordic investors, we look at some of the nuances and specifics that should be considered when defining strategies......
Inflation, Rates and Risk Management: Implications for Insurers
In a dramatically reshaped macro and market landscape, insurance investors are in uncharted waters. What are the keys to navigating them?
Private credit: attractive income and return potential in a ‘higher for longer’ world
While global interest rates raced higher last year, 2023 has been characterised by a cooler economic environment as central bank tightening slows and rates stabilise. Invesco´s experts from their direct lending, bank loans and distressed credit teams share their views on what’s next, and what this means for private credit investors......
Global real estate and banking sector turmoil: Have the storm clouds passed?
The turmoil in the banking sector which erupted in March sparked a degree of panic lasting into April. In this mid-year view, M&G ask: is the worst of the banking turmoil over, and how concerned should we be about any impact on the property market that may lie ahead?
The case for a market neutral Absolute Return Government Bond fund
The unfolding environment has never been better for an active manager in the sovereign bond space, argues Craig Inches of Royal London Asset Management. He sees several strategic and tactical opportunities persisting for several years and he outlines them here.........
NordicInvestor roundtable – diversifying private debt portfolios
Allocators and asset managers from Sweden, Finland and the Netherlands discussed geographic diversification, market timing and distressed opportunities, credit ratings, defaults and workouts, sizes of corporate borrowers and consumer versus corporate risk. Most allocators’ existing exposure to private debt is well below their targets and there is plenty of capital to deploy.
Reconsidering the banks sector
Royal London Asset Management´s Head of Sustainable Investments, Mike Fox, makes the case for why the firm is increasing exposure to banks amidst a changing macro environment, more attractive financial characteristics for equity investors and improved environmental performance as better disclosure on financed emissions and clearer policies on future lending are made.....
Opportunistic credit strategies: weakening credit and tightening lending conditions drive compelling value
Higher interest rates and tighter lending conditions are creating a very attractive environment for opportunistic credit managers with flexible capital to fill large liquidity gaps.....
Demystifying emerging markets debt hard currency
Emerging markets debt hard currency offers unrivalled scale, compelling diversification and attractive return potential but myths pervade the asset class which detach perception from reality around defaults, leverage to the developed market cycle and ESG risks, argues Janus Henderson´s Thomas Haugaard.....
NordicInvestor roundtable – tactical asset allocation in 2023
In this virtual roundtable we were joined by investors from Norway, Sweden and The Netherlands to discuss how asset owners, asset managers and allocators face a new landscape of absolute and relative value and risk premia in terms of interest rates, credit spreads, illiquidity premia, corporate and consumer default risk.......
Apoteket (Swedish Pharmacy) Pension Fund celebrates 2022
We sat down with CIO, Gustav Karner, to talk about how the EUR 1.2 billion fund managed to create a positive return in 2022 with the help of hedge funds and defensive macro positioning.....
US high yield corporate debt: market outlook
Speaking to allocators across the Nordics, we hear different opinions about the outlook for high yield credit spreads, default rates, recovery rates and other variables. Hamlin Lowell interviewed Insight portfolio manager, Paul Benson, to gather some historical and analytical perspectives....
A downturn is ahead, but pinpointing when and where is the real question
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.....
“Efficient Beta” Exposure to Corporate Credit
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.....
2023 credit outlook: Playing defence but preparing for an offensive push
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.......
A lot of carry but a little wary: Optimizing for volatility in high yield bonds
"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.......
An opportune time for active investing in Nordic High Yield?
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......
Decarbonizing the world: the three things asset managers must do
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.........
A safe haven in a time of uncertainty
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......
Opportunities in alternative fixed income
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.......
Yield Pickup, illiquidity, model valuations and credit risk
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.....
Credit where credit is due: four common misconceptions in public and private credit markets
Heightened market volatility has led to misconceptions about credit, in Pimco´s view. They dispel four of them here......
Evaluating labelled bonds: a robust framework is key
The sustainable debt market is growing rapidly as issuers face increased pressure from investors and regulators to finance a more sustainable future. Here we look at how to assess the suitability of labelled issuance for portfolios and highlight how to use engagement to combat greenwashing.....
Selective Value in Emerging Market Debt
Alejandro Arevalo is seeing both fair value in absolute terms as well as relative value against US high yield being the the cheapest in half a decade....
Are all net-zero goals created equal?
Given the various inconsistencies in how the phrase is understood, what does “net zero” really mean – and how should progress towards this goal be measured?
5 themes to consider when investing in global bond markets
Interest rates remain ultra-low, fiscal stimulus may be near a peak and major economies’ monetary policy will likely become less accommodative. So how do you invest in these markets?
Danish versus Dutch mortgage investments: How do they compare?
Many institutional investors have been attracted in recent years by the potential for high yields on mortgage investments. Exposure to the mortgage market can be achieved in various ways. In this article, we compare Danish mortgage bonds with direct investments in Dutch mortgage loans.......
Debt cancellation needs to be on the table
The quick dismissal by Christine Lagarde and other central bankers and economists on the prospect of debt cancellation as part of the pandemic recovery misses one very obvious fact......
Disruption and Dispersion: A Bottom‑Up Approach to an Uneven Credit Recovery
While the COVID-19 pandemic has disrupted global credit markets, PIMCO believes bottom-up research is key to reveal opportunities for 2021......
Currency Hedging for Illiquid Asset Classes and Strategies
We take an in-depth look at how asset managers can, and perhaps should, offer hedging to investors in illiquid strategies. Safe to say, it requires a bespoke approach......
Proventus Capital Partners: Active ESG for Private and Public Credit
We talk to Marjo Koivisto, Investment Associate and Head of ESG, for an in-depth discussion about how the firm integrates ESG in their private credit strategies....
How should a “Green Bond” be defined?
Following our recent roundtable, we interviewed Douglas Farquhar of NN Investment Partners, who previously worked as a verifier of green bonds, to discuss different opinions around classifying green bonds.....
Nordea’s External Credit Managers – Balancing Alpha and Risk Management
Anders Bertramsen, talks to us about where he sees opportunities in the credit markets, how his team selects managers and how they are kept in line once in....
Codan’s Credit Allocations – A broad spectrum of liquidity
Jon Pommergard Lind, Investment and Treasury Manager, who discusses how he balances weightings in highly liquid credit with the need for some allocations to earn additional yield from illiquidity premia.....
Mandatum: Good Risk/Reward from Selected Leveraged Loans
Head of Loan Strategy, Alexander Galotti, and Senior Portfolio Manager, Kimmo Salokoski, share their active, contrarian, opportunistic and benchmark-agnostic approach to investing in credit....
Confronting the Covid-19 crisis within the credit markets – Perceptions, insights & learnings
We were joined by Karsten Marzoll of SEB, Anand Dharan of Wellington, Jonas Thulin of Erik Penser and Martin Axell of Länsförsökringar for great discussion about the current state of the credit markets and what they expect from 2021.....
Building a Diversified Green Bonds Portfolio
We discuss ways in which investors can, and cannot, diversify a green bond portfolio, with Douglas Farquhar.....
Max Matthiessen: Majoring on High Quality and Investment Grade Credit
Q&A with Jon Arnell, Head of Investments, on the firms investment strategy for their pensions, asset management and non-life insurance products....
Emerging market debt: A path less volatile
An in-depth look into an asset class that keeps drawing the interest of investors thanks to attractive yields and its diversification potential. But while markets recovered quickly from the volatility, investors should remain cautious for the challenges ahead....
Global high yield: Stimulus fuels the march of the zombies
Zombie companies are the talk of the town. Will they limp on forever, storing up potential trouble for investors’ portfolios, or can they revive and thrive after the COVID crisis.......?
Innovation in the sovereign green bond market – Germany’s green twin bond
Earlier this month the German government issued its first green bond and plans a regular offering to build a green yield curve. With Germany being a key capital market, we take a loo at what this means for investors....
Finding credit opportunities amid the COVID crisis
Wellington´s Campe Goodman shares his views on the credit markets, the impact of Covid-19 and how he is allocating capital across sectors.....
Carefully Selected Credit offers Good Risk/Reward
Erik Bennike, head of credit at PensionDanmark, shares his outlook on the credit markets, how it is affecting allocations and why he is cautiously optimistic.....
The art of differentiation
Why there are still opportunities for investors in emerging market debt, despite expectations of higher defaults and lower recovery rates....
Differentiation is key as crisis exposes pre-existing vulnerabilities
We take a further look into Emerging Markets and caught up with Alejandro Arevalo to learn more about which sectors and countries he seeks out or avoids....
Fixed income opportunities and threats for insurers in a rapidly changing world
The outbreak of the coronavirus across the world has sent financial markets into shock. This article provides an update on how recent market turmoil has impacted fixed income assets, the core holdings for most insurers...
Asian Credit: the Boring Emerging Market for 2020?
We look at the key drivers in Asian credit and how careful selection means finding quality, liquidity and yield.....
The High Yield Position
Why a Long/Short approach to High Yield Credit makes sense in the current environment...
Direct Lending: Is Market Maturity Cutting Covenants?
In the first of a series, we take a look at the deterioration of covenants in the private credit markets. How much of a problem does it pose and what it means for investors.....
Making a Difference
Why ESG is Essential for Successful Investing in Emerging Markets Debt...
Aktia’s Multi-Manager Private Credit Strategies
Head of Alternatives, Ville Toivakainen, talks trade finance, aircraft leasing, impact investing and much more…
Structured Credit Yield Pickup Persists
Can CLO´s provide a positive yield oasis amid negative yields?
Short Duration Investment Grade Corporate Credit
An alternative to negative rates on bank deposits.....
European High Yield: Income of Around 3% Remains
Fundamental headwinds balanced out by renewed ECB QE....
Tailoring the Approach: Implementing ESG in Private Debt
Archie Beecher explains how a proactive approach helps identify ESG risk and exposure to it....
Can global high yield investors continue to profit from low risk of default?
High yield investors had a good start of the year; is there any need to sell already? Or should we continue to profit from this clear-cut and exploitable market anomaly?
Goldman Finally Capitulates, Sees Rate Cuts In July And September
The time of the bond vigilantes is back....have we reached a point where the bond markets now can force the Fed´s hand?
Jupiter Dynamic Bond Strategy: Defensive and Opportunistic
Head of Strategy Fixed Income, Ariel Bezalel, talks about recessionary risks and how it affects his asset allocation.....
How to optimise diversification to improve risk-adjusted returns
How expected returns can be enhanced without increasing risks - can cutting-edge visualisation tools and a first-principles approach secure the predictable benefits of a diversified portfolio?
ESG, Credit Risk and Ratings: A Case Study
Can ESG ratings on sovereign credit help manage long-term risks?
Give a Little Credit
Making the case for the U.S. lower middle market and addressing myths of direct lending
What are the key features of investing in alternative fixed income?
Alternative fixed income seems to mean many things to many people. Rob Evers provides an overview of characteristics for a very broad asset class......
Finding Value as the Momentum Fades
With fundamentals shifting, is 2019 seeing the return to value trades in global credit markets?
Credit Market Outlook: Selection and Name-Picking Key
We asked Aperture Investors’ Chief CIO, Simon Thorp, where he is looking for long and short ideas in liquid corporate credit markets....
Timing Allocations to Emerging Market Credit
While Emerging Markets is an asset class that can have bouts of volatility, it is difficult for investors to ignore given its diversification benefits, attractive valuations and the fact that about 70% of global economic growth emanates from it...
Credit and ESG Investing
The application of ESG to credit investing is rapidly evolving, and is, thus far, most well-developed in relation to investment grade corporate credit....
Asian credit: could 2019 match 2009 and 1999 vintages?
"Asian credit now offers one of the three most compelling environments I have seen over my thirty-year career..." says Clearwater Capitals co-founder Rob Petty
Global Growth Slows, With Trade Wars Biggest Risk
What lies ahead; State Street Global Advisors is first out to give their view on what investors can expect, and what they should be looking out for, in 2019....
Short Duration Credit – A Defensive, Late Cycle Strategy
Credit spreads have widened out in 2018, which has been the worst year since 2008 for some parts of the credit markets. Is it still possible to construct a defensive strategy through careful rules and credit selection?
The Green Bonds market
For the first five years, issuance of green bonds was measured in single digit billions, but has recently accelerated to USD 155 billion in 2017, and a forecast USD 250 billion in 2018....
Infrastructure debt in a portfolio context – A first exploration
We explore the added value of infrastructure debt in a portfolio context. Does it have an attractive risk-return trade-off and can it offer diversification potential in a fixed income portfolio of a pension fund or insurance company?
Trade War Rhetoric and Reality
Could Asian credit prove to be resilient? Christina Bastin, offers a cold, hard and dispassionate perspective on the trade war, and its implications for investors...
European Equities: Q&A with Alexander Darwall, Head of Strategy at Jupiter
European equities in general have produced disappointing performance but some high conviction stock-pickershave found hidden gems and compelling growth stories despite the sclerotic economic backdrop...
Europe’s Migration Nations
Without immigration, Europe's population is set to decline by around 10% over the next three decades. Is Europe's situation sustainable?...
Alternative View: ABS Under the Microscope
What are ABS, how are they structured and what are the characteristics of the European ABS market? This analysis helps investors to better understand the asset class, its opportunities and risks....
SDG Bonds: Creating a World of Opportunity for Issuers and Investors
The UN Sustainable Development Goals provide the investment community, including bond issuers, with a framework for tackling long-term global challenges....
“Target Date” Corporate Credit: Oddo BHF Haut Rendement 2025
Q&A with Alain Krief and the bond stategy that replaces benchmarks with target dates...
Can socially responsible investing enhance returns in corporate credit?
For a bond manager, there are many credible options to deploy in an ESG strategy...
A look across the Border – Danish mortgage bonds versus Dutch mortgage loans
For investors who allocate part of their assets to illiquid categories, Dutch mortgages can offer an additional spread compared to Danish mortgage bonds...
Rev up: engineering an emerging market debt portfolio
LGIM´s Uday Patnaik examines the nuts and bolts of putting an EMD portfolio together...
A New Regime in European Credit
As volatility rises and the beta rally draws to a close, how can investors seek to strike a balance between return maximisation and drawdown protection?
Smart Beta for Bond and Credit markets
The growing menu of smart beta credit products will be useful for those who allocate externally – and indeed those who want to negotiate bespoke strategies. We touch on a handful of examples....
EM local currency bonds for USD investors
Mike Biggs explains how skipping the USD can bring down volatility and enhance returns when investing in EM local currency debt
A Growing Investment Universe Still Demands Discerning Analysis
Since 1988, Jupiter Ecology’s investment universe has ballooned from under 100 to over 1,200 companies. Regulation and subsidies have spawned new industries and firms, and awareness of climate change is now global.
Resilience Anticipated Amid Rising Rates
With interest rates in the Eurozone, Denmark and Sweden having been negative for some years, investors are considering a switch from fixed rate assets to floating rate assets, which should see their coupons increase when and if rates rise.
Inflation Linked Bonds
Both short term interest rates, and yields on longer term government debt, are below inflation in most developed countries. Are inflation-linked government bonds a solution?
Emerging Market Cycles and Diversification
Day to day market movements often seem to suggest that emerging markets are highly correlated with developed markets, and in... Read more