Barclays' Prison Break
ESG conscious investors, ourselves included, of course, are applauding this brave decision by Barclays to put their conscience before profit, but they are not the first to do so.
Insights Topic
Fixed Income
Volatility in Rates Eased For Now
This recent stability in the rates curve suggests to us that for now the market is listening to the Fed’s rhetoric and as a result the UST market feels better balanced.
Asset-Backed Securities – Quarterly Update – April 2021
TwentyFour AM partner and portfolio manager Douglas Charleston discusses how ABS markets have performed in the first quarter of 2021 and provides his outlook for the rest of the year.
Negative ‘Bond’ Headlines Belie the Reality of Credit’s Strong Performance
With treasury yields moving aggressively higher this year, anyone reading or listening to the financial press will have become very accustomed to headlines highlighting the negative performance of “Bonds”.
Sustainability To the Fore as SFDR Kicks In
There are many other aspects of SFDR to discuss and we expect the market to take some time to fully adjust.
A New Low for Investor Protection in Euro High Yield
Primary deals launched in the European high yield market over the last two weeks have been diverse, and at times opportunistic.
Brass Builds Momentum in ESG ABS
In terms of execution, it is difficult to assess any ‘ESG premium’ in Brass 10 given the overall strong demand, and in our view it’s still early to weigh the importance of a ‘social’ label for ABS investors.
The Fed Shows Little Resistance to Higher Yields
The Fed maintained its dovish stance on Wednesday and offered very little in the way of resistance to the ongoing rise in US Treasury yields.
Green RMBS Is No STORM in a Tea Cup
For most investors this deal would likely be considered a liquidity position, and at a spread of 15bp this is certainly not the sexiest proposition the European ABS market has to offer, but what is interesting about this latest instalment from the STORM platform is what makes the deal ‘Green’.
Are Markets Getting Ahead of the Fed?
The bear steepening of the US Treasury curve has undoubtedly been the story of 2021 so far for fixed income investors, many of whom will have felt the adverse impact of the broad rates sell-off on their portfolios.
Inflation Concerns Put ABS in Focus
For fixed income investors, we think floating rate European ABS bonds could be an allocation consideration to help improve return prospects and reduce volatility.
Why TIPS Aren’t as Generous as They Seem
In a developed country such as the US, a scenario of rising inflation expectations is usually accompanied by a bear steepening across maturities of the underlying yield curve.