All insights

With a student housing CMBS deal recently brought to market, Kevin Law evaluates the sector’s outlook in the aftermath of COVID-19

With all eyes on November 3 and the Fed’s next move, Paul Kim looks at supply chain disruption in the US and how its cost pressures have shifted the narrative on ‘transitory’ inflation.

TwentyFour Partner and Portfolio Manager, Douglas Charleston, explains how ABS markets have performed in Q3 2021 and provides his outlook for the rest of the year.

TwentyFour Portfolio Manager, Diana Chiu, discusses how Investment Grade markets have performed in Q3 2021 and provides her outlook for the rest of the year.

A member of the Multi-Sector Bond team discusses market conditions in Q3 2021 and provides her outlook for the rest of the year.

After a mixed start to Q4 for risk assets, Elena Rinaldi examines how European ABS and CLO assets have fared so far in Q4 and the factors currently affecting both markets.

TwentyFour Partner and Chairman Graeme Anderson discusses the firm’s ESG developments during Q3 2021 and presents its plan for the coming months.

Let’s not forget that the BoE dropped rates from 0.75% right down to 0.1% at the start of the COVID-19 pandemic back in March 2020, having only managed to put through two hikes in 2017 and 2018. It has changed course sharply before.

Fixed income markets have experienced a reasonable correction over recent weeks and, for higher-yielding indices at least, their first negative period so far this year.

Given the prospect of central bank tapering and ultimately interest rate rises are looming ever larger, it is no surprise dealmakers are trying to take advantage of attractive financing terms while they still exist.

While bank treasurers may have to work a bit harder this year-end to formulate wholesale funding plans, the ABS market that they may be more reliant on going forward is experiencing a strong resurgence, which should ease the process of weaning off central bank funding.

This looks to us like a buy-into-the-dip opportunity, but investors should be wary of taking on too much rate sensitivity as the move in risk-free curves is likely to persist until the rate hike cycle is actually on the way.