Fixed Income

TwentyFour CEO Mark Holman explains how high conviction thinking runs right through the firm’s investment process, and why he believes a concentrated, flexible portfolio is critical to combatting the unique challenges facing fixed income markets today.

Since the result of the UK referendum in June 2016 there has been a noticeable ‘Brexit-premium’ associated with most sterling denominated assets.

TwentyFour Asset Management CEO, Mark Holman, explains how high conviction has been made an integral part of the firm's investment process, and why he is in no doubt this approach can lead to material outperformance over the longer term.

Last Friday’s strong US GDP reading for the first quarter has sparked several days of debate between TwentyFour portfolio managers. The 3.2% reading was 100bp ahead of consensus, so a strong beat at the headline level, but the components accounting for it, such as inventory building, suggested the figure was an aberration and likely to reverse in Q2.

TwentyFour Asset Management, the London-based fixed income boutique of Vontobel Asset Management, has appointed Paul Kim as an analyst in its New York office.

Emerging Market (EM) bonds have had a good year so far. While they are not at the very top of the performance table, the hard currency CEMBI (Corporate Emerging Markets Bond Index) is up 5.69% in $ since the start of the year, and the EMBI (Sovereigns) is up 6.32%; not bad at all.

The cycle of banks calling outstanding capital bonds continued this week and we’ll soon be bidding fond farewells to two of our long held and favourite positions; Nationwide’s 6.875% Additional Tier 1 (CoCo) and Barclays’ 14% hybrid Tier 1.

The Bank of England’s credit conditions survey for the first quarter of 2019 was released last Thursday, coinciding with an extended holiday period for many commentators, but certain sections made for interesting reading and are worth highlighting.

The end of 2018 and beginning of this year has been a tough time for credit, but it has also created an opportunity for CLO managers to invest in good companies at cheaper prices.

Ben Hayward looks at the Q1 performance for Asset Backed Securities and provides an outlook for the year ahead.

Chris Bowie looks at the performance of the Outcome Driven strategy over the last quarter and looks forward to the rest of 2019.

Felipe Villarroel discusses the Strategic Income strategy performance for Q1 and looks forward to the rest of the year.