3 Apr 2024 TwentyFour Blog Eventful few weeks in European high yield It has been an eventful few weeks in the European high yield market. After waiting a long time for a bus to come along, three have come along at once. Read more
2 Apr 2024 TwentyFour Blog Q1 recap: macro drivers and fixed income performance Quarter ends are always a useful time to take a step back and assess what the main macro drivers during the quarter were, which trades worked and which did not and to refresh macro views for the next period. Read more
25 Mar 2024 TwentyFour Blog AT1s caught in the crossfire but junior bank debt is here to stay Over the course of last week, we saw several headlines around Additional Tier 1s (AT1s). First, the Dutch Finance Ministry indicated it is exploring the possibility of modifying or abolishing the asset class. Read more
13 Mar 2024 TwentyFour Blog Mixed news from the CPI release - but what does it mean for rate cuts? Yesterday’s US CPI report delivered a few interesting numbers but is still consistent with the Fed’s goals and timelines, which should allow it to cut rates in the context of some sort of a soft landing. Read more
8 Mar 2024 TwentyFour Blog Powell and Lagarde share notes on possible rate cuts We have had a busy week on the central bank front with the Federal Reserve chair Jerome Powell’s semi-annual testimony to congress on Wednesday before Christine Lagarde took centre stage at the European Central Bank press conference yesterday. Read more
6 Mar 2024 TwentyFour Blog RT1s in vogue once again as issuance bounces back NN Group, the Dutch insurer, has issued its inaugural €750m Restricted Tier 1 (RT1) deal, which came with a 6.375% coupon and BBB-/BBB rating from S&P/Fitch. Read more
4 Mar 2024 TwentyFour Blog One year on from the collapse of Credit Suisse - and what a year it has been for AT1s Almost a year ago to the day, we were in the midst of banking sector turmoil, which started off with regional banks in the US and spilled over to Europe, eventually culminating in the forced merger between Swiss banks UBS and Credit Suisse. Read more
20 Feb 2024 TwentyFour Blog The UK’s data rollercoaster: recession confirmed, inflation eases, and consumers rebound Last week's data deluge from the UK painted a mixed picture for the economy, offering insights into inflation, growth, and the possible path for interest rates. Read more
15 Feb 2024 Market Update Income is back: five reasons to invest in bonds in 2024 Income has returned. After a couple of barren years, yields in high-quality bonds that were not too long ago returning just 2% or 3% are now set to bring in 7% to 8%. And this jump in yields looks to be a game changer for investors. Read more
6 Feb 2024 Event Replay Back to Basics: RMBS On our first educational webinar in our newly launched 'Back to Basics' series, Aza Teeuwen (Partner, Portfolio Management) and Douglas Charleston, (Partner, Portfolio Management) provided a comprehensive understanding of the key aspects and trends within the European RMBS market. Watch now
5 Feb 2024 TwentyFour Blog Issuer calls drive AT1 spread compression A few weeks ago, JP Morgan skipped a call on one of its $1,000 par preference shares (“US Prefs”). The perpetual notes had a coupon of 6.75% payable until Jan’24, with a subsequent reset of 3-month SOFR + 404bps. Post the non-call, the coupon changed to 9.35% and will continue to reset every 3 months. Read more
1 Feb 2024 TwentyFour Blog ‘Let’s be honest, this is a good economy’: the Fed’s comments unpicked Yesterday was an eventful day for markets. We started off with inflation data in Europe, followed by an earnings release by New York Community Bank that showed large provisions in their commercial real estate loan book, before moving onto the Fed’s Federal Open Market Committee meeting Read more