Elena Rinaldi, Portfolio Management, discusses how banks have benefited from many years of ultra-cheap financing from central banks – which is now coming to an end and giving way to a more dedicated capital market funding needs - and touches on what the results of these changes are.
Market updates
Bank RMBS
Multi-Sector Bond Quarterly Update – October 2023
A member of our Multi-Sector Bond team reflects on a tricky quarter for markets, highlighting the behaviour of the US Federal Reserve, the ECB and the Bank of England and then discusses the ways in which the MSB team have responded to these Q3 events.
Investment Grade Quarterly Update – October 2023
In our Investment Grade quarterly update, Gordon Shannon, reflects on government bond yields, which accelerated sharply at the end of Q3, as well as commenting on the behaviour of the European Central Banks over the quarter and the soft-landing 'fairytale' markets had hoped for.
Asset-Backed Securities Quarterly Update – October 2023
Elena Rinaldi gives an update on the market, highlighting the peak in rates in the quarter, the performance of ABS for the quarter, and delving deeper into the primary issuance activity over the summer months.
The health of the consumer
Charles Dennis, Portfolio Management, states that through having access to detailed consumer data, the team are able to build a very complete picture of the consumer’s profile. Alongside this, he highlights that inflation across the UK, US and Europe appears to be on its way down, which is a slight pressure ease for central banks, signalling we are at or near peak rates.
What has the consumer experienced in recent times and what does this slight easing mean for the consumer?
Update on European banks and AT1s
Dillon Lancaster, Portfolio Management, provides an update on European banks and AT1s and the bout of volatility they suffered earlier this year, following the US regional bank crisis and Credit Suisse.
When is the right time to add duration?
Jack Daley, Portfolio Management, tackles a common question: When is the right time to add duration? This is a topic we frequently explore and debate.
Opportunities in short-dated AT1s
Johnathan Owen, Portfolio Management, reflects on why the AT1 market has been brought into the spotlight this year, following the events of the US regional banking crisis and Credit Suisse.
Inverted yields curves make short-dated bonds more compelling
It is our view that without a doubt 2022 was a year to forget for the bond market. Whether you held government bonds, high end corporate credit or riskier high yield paper, you would have taken a knock as steep increases in interest rates across the globe sent bond prices tumbling.
Speed is now of the essence in the bond markets
After what can only be described as a relatively dire year for fixed income in 2022, during which spiralling inflation led to one of the most aggressive rate hiking cycles on record, we believe the market for bonds is now looking much healthier.
How will our portfolio perform if we don’t get the expected soft landing
George Curtis, Portfolio Management explores how our portfolio will perform in the event we don’t get the expected soft landing.
Why now for short-dated IG credit?
Chris Bowie, Partner and Portfolio Management, discusses three key reasons why he believes short-dated investment grade credit is an attractive investment option.