Here’s a short video I recorded with my multi-asset colleagues Steven Andrew and Tristan Hanson, in which we debate the highlights of 2017 and look ahead to 2018. After a year that has turned out to hold fewer surprises than many might have expected, what lies in store for financial markets in the coming 12 months?
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Yesterday we saw Inter Milan issue the first football related high yield bond since we saw Manchester United tap the market back in January 2010. Putting aside the natural tribalism of 2 of my esteemed colleagues (both Italian, both ardent AC Milan supporters), we decided not to invest in the €300m 4.875% 2022 bond.
In terms of fundamentals, legal claim, and relative value, the bond stacks up f… Read the article
In our latest Panoramic Outlook, Jim Leaviss assesses the forces behind the robust and broad-based nature of global economic growth in recent months and the prospects for this broadly rosy outlook continuing into 2018. He looks at where we are within the current global deleveraging cycle, and asks how high this means that rates can go. In Jim’s view, the quality of investment grade credit has s… Read the article
Here is the 11th annual Christmas Quiz. 20 questions, and the closing date for entries is midday on Friday 22nd December. Please email your answers to us at email@example.com. The winner will get glory, and in lieu of a golden trophy, M&G has donated £500 to Cancer Research UK, through CASCAID. CASCAID is the UK asset management industry’s effort to raise £2 million for this bri… Read the article
Richard recently wrote about how government bond indices should be adjusted to account for quantitative easing (QE) purchases, thereby better reflecting the actual availability of investments in the market. A key argument indicated that given the absence of this adjustment, European government indices are incorrectly skewed towards more highly rated sovereigns, even though their issuance is not… Read the article
This week Stefan Isaacs joins me to review the year that was. Sitting on a bond desk in the City of London, it appeared to be a solid but pretty dull year for fixed income markets. Fortunately, we had the drama of Brexit negotiations and Donald Trump to keep us occupied over the course of the year.
I also question Stefan about his 2018 outlook for bond markets, and whether Liverpool can actuall… Watch the video
After four calendar years of price appreciation, it looks like the US dollar will end 2017 deeply in negative territory. The dollar has fallen by almost 12% this year versus the euro and around 8% on a trade weighted basis. More surprisingly, the sharp depreciation of the dollar against the euro has occurred in a period when central bank policy has diverged, resulting in the yield differential … Read the article
Following on from last Friday’s suspenseful draw for next summer’s World Cup in Russia, we thought it would be a good moment to take a closer look at some of the 32 qualifying nations, and see how they stack up from the perspective of our bond market experts. I am joined in the studio by Fund manager Wolfgang Bauer, and we discuss some of the pressing macro issues facing this eclectic mix of DM… Watch the video
When investing in companies of a lower credit quality, loss given default risk is the key threat that investors have to assess. Consequently, covenant protection is a crucial consideration before lending capital to a company. We wrote about covenant protection back in 2014 and it’s fair to say that covenant quality in the high yield market hasn’t improved much since then; actually quite the opp… Read the article