Author profile

Mario Eisenegger

Years in the bond markets: 3

Specialist subjects: Economics and corporate bonds

Likes: Handball, Oasis, FC Basel

Heroes: Roger Federer, Quentin Tarantino, Spider-Man

Low yield, low quality, weaker covenants

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…

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BVTV: the REIT stuff – a bond investor’s guide to Real Estate Investment Trusts

Today I am joined in the studio by M&G credit analyst Othman El Iraki and we will be taking a closer look at an area of the fixed income market that has been generating a lot of interest in recent months – Real Estate Investment Trusts (REITs). Othman will talk through some of the characteristics of this asset class and explain what’s been driving the recent surge in new bond issuance, especial…

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M&G Panoramic Outlook: “Responsible Junk” – The challenge of integrating ESG factors into a global high yield Bond portfolio.

Growing awareness of a range of environmental, social and governance (ESG) issues has seen an ever larger number of investors move their focus away from purely financial goals towards an approach that also considers the ESG impact of their investments. Consequently,  a pressing question that faces the asset management industry is how to integrate ESG factors into different asset classes and str…

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BVTV: Inflation surprises and central bank dilemmas

Ben Lord, corporate bond fund manager and inflation specialist, joined me in the studio this morning, after a week in which we saw both the UK and US CPI prints surprise to the upside. With some central banks ramping up their hawkish rhetoric in recent weeks, what likelihood of rate hikes are markets now pricing in, and what impact is this having on bond markets? Watch BVTV for Ben’s latest thi…

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BVTV: Oil weakness – threat or opportunity?

As we enter the second half of 2017, one of the biggest themes to emerge recently has been renewed oil price weakness. M&G credit analyst Vladimir Jovkovic joins me this morning on BVTV to discuss what’s driving the latest price falls and what the possible implications may be for the next US high yield investment cycle. Also this morning: a quick recap of how bond markets have performed in the …

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BVTV: Will the Fed spoil the EM party?

A hiking Fed has caused trouble for Emerging Markets in the past; will history repeat itself? Also, we touch on two things from the Fed meeting that are more interesting than the actual hike itself.

Tune in for the latest edition of BVTV, where Fund Manager Claudia Calich joined me to discuss how she has positioned her EM debt portfolios for the second half of the year.

 

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The US has not labelled Switzerland a currency manipulator, yet

Switzerland has made headlines of late as a potential candidate to be labelled a currency manipulator by the U.S. Treasury. For those countries at risk, a report recently published by the U.S Treasury sets out three key criteria the U.S. Treasury will use in order to assess whether a country is “pursuing unfair practices”. Firstly, the country would have a significant bilateral trade surplus wi…

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BV TV: And the Oscar goes to… political risk

We’ve talked before about how important political risk will be in 2017, as French markets have been the latest to discover. Tune in to this week’s edition, where Fund Manager Wolfgang Bauer joins me as we discuss:

  1. What’s the impact of political uncertainty on French OATs?
  2. Is political risk spilling over into the corporate arena: what’s behind the decoupling of European and US credit risk?
  3. Does…

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Swiss bank account holders: negative interest rates are here to stay

It was big news when Postfinance, the first Swiss bank categorised as “too-big-to-fail”, announced the introduction of negative interest rates to customers holding deposits of CHF 1 million and above. Many are now asking how long it will take until banks apply this approach to retail savers. I would argue that it may not be too long given the situation for Swiss banks remains challenging.

Part …

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