The Slavery Abolition Act of 1833 formally freed 800,000 Africans who were then the legal property of Britain’s slave owners. What is less well known is that the same act contained a provision for the financial compensation of the owners of those slaves, by the British taxpayer, for the loss of their “property”. The compensation commission was the government body established to evaluate the cla…Read the article
James Tomlins, M&G fund manger, helps manage over £5bn in high yield assets. This week on BVTV I ask him:
- What is your outlook for global high yield default rates?
- Is Euro high yield overvalued?
- Will 2017 be a vintage year for US HY returns?
Click on the link to hear James’ views and have a look at some of the cracking charts we’ve put together.Watch the video
In this episode of BVTV, I take a look at how the global economy is expected to perform in the second half of 2017. Is it a Goldilocks scenario of solid growth, low inflation and gradual monetary policy tightening, or is something more sinister lurking beneath the surface?
Watch the video
According to recent reports, leading foreign football players in the English Premier League are looking to get paid in euro rather than sterling. Since the UK referendum result in June last year, sterling has fallen by 12% against the euro, so it is unsurprising to see that some players have questioned the denomination of their salaries. It is not the first time that global stars have asked to …Read the article
There are a lot of misconceptions about defaults in emerging market (EM) debt. Too often, EM corporates are either considered ‘serial defaulters’ compared with their developed market peers, or seen as a single and homogeneous geography. In reality, default rates follow economic cycles, and having a regional, if not country, approach to default risk remains paramount due to different jurisdictio…Read the article
It is hard to remember a time when there was so much disagreement around the outlook for corporate bond markets and risk assets. Some investors remain sceptical about the underlying strength of the rally and are uneasy at the pace at which secular stagnation concerns were washed away by the election of Donald Trump. Other investors, hesitant to hold cash or in negative yielding short-dated gove…Read the article
I was joined by Chris Clemmow (Fixed Income Dealer, M&G Investments) this morning for a quick chat about global credit markets. Chris is at the coal face of bond markets, and is a primary source of market information for the fund managers at M&G. Tune in for a discussion of the prevailing market dynamics of the investment grade bond market, and a look at what happens when Article 50 is trigger…Watch the video
We often use Twitter to share the charts that we think are interesting, but probably don’t warrant the extra analysis of a blog. With this in mind, I’ve had a look to see which charts were most favourited or retweeted by our followers at @bondvigilantes and provided a little more detail than 140 characters can allow.
- Fed Loan Officer Survey show US banks have tightened standards for six consec…
Credit is the oil that lubricates the engine of an economy. For this reason, economists watch credit statistics closely, in order to assess the sustainability of growth. If credit isn’t growing, it suggests households and firms aren’t confident enough in their respective outlooks to borrow and invest. If credit grows too quickly, it could result in financial and macroeconomic instability – hist…Read the article
Join us on Bond Vigilantes TV, where this week we discuss:
- Sterling – how low might it go?
- The curious case of rising US dollar and US Treasury yield correlations;
- Corporate bond markets and economic uncertainty;
- Euro corporate bond issuance – a sign of things to come?
Tune in for our thoughts on the stories making headlines this week.
Watch the video