17 Sep 2020 Market Update Fixed income liquidity during and after COVID sell-off Scott Crichton discusses liquidity within fixed income during and after the COVID sell-off Watch now
17 Sep 2020 Market Update Where to look for income post-COVID Partner and Portfolio Manager Chris Bowie discusses the sources of income for investors within Fixed Income following the COVID crisis. Watch now
17 Sep 2020 Market Update COVID credit performance in ABS Marko Feiertag, Portfolio Manager, discusses the ABS credit performance during the COVID crisis. Watch now
30 Jul 2020 TwentyFour Blog Are Banks Becoming Less Cyclical? This week we are right in the middle of the European banks’ Q2 reporting period. Today for example we had results from a diverse group of Europe-listed banks, with Credit Suisse, BBVA, Lloyds and Standard Chartered all reporting. All have very different business models and footprints across varying geographies. Read more
17 Jul 2020 TwentyFour Blog Diverging Defaults and Cyclical Selections Earlier this week, Moody’s published its default study for June, which showed that as expected, default rates globally have started to pick up as a result of COVID-19. The trailing 12-month global high yield default rate reached 5.4% at the end of June, up from 4.8% in May, as the gap to the long term average of 4.1% continues to grow. Read more
6 Jul 2020 TwentyFour Blog Anticipation Building for Q2 Reporting Season Like many market participants we are looking ahead to a much anticipated Q2 reporting season, which is even more pertinent this year given the unprecedented environment we have all found ourselves in. We are particularly interested in reviewing the major banks given they are at the centre of the transmission mechanism and hence a barometer for the wider economy. Read more
3 Jul 2020 TwentyFour Blog It’s Still Harvest Season For The Brexit Premium One topic that is beginning to gather headlines again is the terms of any bilateral agreement between the UK and European Union once Brexit is finally completed at the end of this year, with the latest round of negotiations breaking up a day early this week as both sides said they were still far apart on a number of issues. Read more
24 Jun 2020 TwentyFour Blog RMBS Data Shed Light on UK Mortgage Holidays The dust is beginning to settle in the UK economy, and we have been busy using granular RMBS data to assess the impact of mortgage payment relief (payment “holidays”), which the Financial Conduct Authority guided lenders to offer borrowers affected by COVID-19. Read more
18 Jun 2020 TwentyFour Blog Central Bank Liquidity Will Dampen Default Cycle The European high yield market has shown remarkable resilience in the face of what will likely go down as one of the sharpest and most severe recessions in history. The benchmark iTraxx Xover index (a widely used proxy for Euro HY credit risk) has tightened from an intraday high of 730bp in March to 342bp earlier this week, a retracement of almost 75% from the January lows of approximately 200bp. Read more
1 Jun 2020 TwentyFour Blog Virus Widens Gap Between European and US CLOs In the past few weeks CLOs have become the focus of much attention, both from market participants and the media, especially following the negative rating actions that agencies have taken on the underlying loans as well as CLO tranches. Read more
27 May 2020 TwentyFour Blog Is Bank Loss Provisioning Behind Us Already? A few weeks ago Bank of America Merrill Lynch’s CEO, Brian Moynihan, said that loan losses were not coming through as thick or as fast as he would normally expect for a recession, in particular a recession of this magnitude. Read more
19 May 2020 TwentyFour Blog EU Aid Too Little, Too Late Markets opened today to the news that German Chancellor, Angela Merkel, and French President, Emmanuel Macron, had reached an agreement to support the launch of a €500bn support package to aid the European Union’s recovery from the coronavirus outbreak, which has devastated large parts of the continent. Read more