Time to Test The Water in CCCs?
We think it is indeed time to begin the search for recovery stories and deleveraging credits in sectors where the execution strategy is likely to succeed.
Insights Topic
TwentyFour
The Great CLO Refinancing is Well Underway
I think it’s likely we’ll see new cycle tights for the European CLO sector this year, so in addition to healthy income we believe there is plenty of room for capital appreciation as prices are being pushed higher in the secondary market.
Default Peaks May Already Be Behind Us
We think this current pause in the global rally is healthy and gives investors a rare moment to reassess, but from a fixed income credit point of view we would not expect too much of a dip.
Where Did all the Banks Go?
European ABS primary markets have started 2021 at the solid pace that most market participants expected. The market saw a patchy Q4 in which activity petered out early, not helped by the dominant UK market suffering some hesitation whilst tightrope Brexit deal talks went to the wire, but also as a result of a rather more simple fatigue that appeared to have set in.
Comprehending The Brexit Premium
In our view the rationale for the premium is certainly weakening and, of course, we can no longer call it a ‘Brexit’ premium.
Investment Grade Quarterly Update – January 2021
Partner and portfolio manager Chris Bowie looks back at investment grade credit market performance in 2020 and provides his outlook for 2021
Asset-Backed Securities Quarterly Update – January 2021
TwentyFour AM partner and portfolio manager Douglas Charleston discusses Q4 performance for ABS markets and provides his outlook for 2021.
Multi-Sector Bond Quarterly Update – January 2021
George Curtis discusses credit markets in Q4 2020 and provides his outlook for the year ahead
Trio of HY Deals Could Set Tone for 2021
For high yield issuers 2021 has started in a similar vein to 2020, with the technical backdrop providing an attractive environment for capital raising.
ABS in 2021: Spread Tightening and Supply Surprises
Our analysis indicates European ABS investors can carry forward little concern about nasty default surprises, and this is likely to be important when considering total returns for 2021.
Where Yields Are Higher Than High Yield
At the moment CLO spreads are tightening, as they are right across credit. However, we haven’t had any CLO primary deals come to market so far in 2021, so we are operating in a bit of an informational vacuum, at which point these cross-asset class comparisons can be useful.
Fast Moving Cycle
As we have said many times over the past few months, this cycle is likely to be remembered (among other reasons) as being exceptional for its unprecedented momentum.