Highest starting yields since ‘08 predict strong five-year returns
Chris Bowie explains why he believes analysing starting yields can explain improved returns over the next five years
Insights Topic
Investment Grade
Are short term bonds the ‘best game in town’?
With investors caught between inflation and recession, Chris Bowie argues current valuations in short term, investment grade bonds can offer portfolios both downside protection and attractive yields.
Reasons to be constructive on extension risk
Telefonica’s reopening of the corporate hybrid market is further evidence that large issuers with proven track records and strong financials will call their bonds even if it looks uneconomic to do so, says Johnathan Owen.
Healthy premiums drive big day for primary markets
With well over €10bn of new bonds sold by European banks and corporates on Monday, Felipe Villarroel analyses the pricing and looks at the patterns that usually emerge when primary markets reopen.
UK risk premium looks too steep with stability restored
With Rishi Sunak and Jeremy Hunt leading a more fiscally conservative UK government, Johnathan Owen checks in on sterling asset valuations and argues the UK premium is overcompensating for underlying risks.
Investment Grade Quarterly Update – October 2022
TwentyFour Portfolio Manager, Johnathan Owen, explains how investment grade markets have performed in Q3 2022.
Are BBBs still the place to be?
With rates volatility persisting and developed markets likely sliding toward recession, Jack Daley revisits our research on BBB defaults and returns and explains why we tend to maintain a significant allocation to BBB credit.
Is there now enough yield on the table in fixed income?
Chris Bowie runs through the four risks he says fixed income investors need to watch right now – inflation, unemployment, geopolitics and liquidity – and why he believes short dated bonds might offer some protection
Why are high break-evens attractive for investors?
Johnathan Owen explains why bonds with high break-even yields can be attractive for investors, and looks at two examples of UK companies with high break-evens.
Investment Grade Quarterly Update – July 2022
Gordon Shannon reviews Q2 2022 in fixed income and breaks down the resulting risks and opportunities he sees in investment grade bonds.
US bank chiefs still like the consumer
US banks remain bullish about the health of the consumer, but credit spreads are still pricing in not only a recession, but a fairly severe one. Are the banks wrong? Or have credit markets just backed up too far on negative fund flows?
Buy now while spreads last
With corporate bond spreads having risen to not far short of crisis levels, Johnathan Owen argues the 4%-plus yields on offer in short dated investment grade are an attractive entry point for investors that might not be around for long.