Multi-Sector Bonds

Higher starting yields have unsurprisingly driven a resurgence in demand for multi-asset credit strategies, which may be well placed to take advantage of a structural backdrop that we think will be a tailwind for credit assets in the medium term.

French government bonds (OATs) keep on breaking records and psychological barriers, with the latest being 10-year yields smashing through 5% for the first time since 2002 this week.

TwentyFour Asset Management’s Felicity Juckes reflects on a quarter shaped by renewed geopolitical tensions, higher energy prices and government bond volatility.

This week a small Austrian lender, KommunalKredit, brought to the market a €150m Additional Tier 1 (AT1) transaction.

September’s surge in high yield (HY) issuance tested the limits of investor appetite in an evolving market.

France has been the primary focus of the European rates markets in the past week, with domestic political risk and debt concerns adding to a general sell-off across government bonds.

Fixed income investors have had to adjust to a dramatic shift in market conditions as the year has evolved.

E-commerce platform InPost has entered the European high yield (HY) market this week with a new seven-year senior secured bond as part of a €3bn financing package to help fund its acquisition by an Advent led consortium.

With two-year UST yields at around 4.7%, we think short end yields are offering an attractive potential hedge against both downside growth catalysts and lower oil prices.

The topic of banking “deregulation” has come back to the fore this year, mainly fuelled by initiatives from the US authorities.

The importance of “term premium” in discussions about yield curves has been on the rise this year.

The latest FOMC meeting delivered more than a rate hike. Chair Warsh's clear hawkish message that inflation has been too high for too long helped restore confidence in the Fed's commitment to tackling inflation, with important implications for bond markets and rate expectations.