Multi-Sector Bonds

There is good reason for fixed income investors to be positive as we move into 2024, although there is also reason to remain cautious. The welcome news is that inflation globally has finally started to fall after remaining stubbornly high for most of 2023.

After a horrible year for financial markets in 2022, the macro-outlook for 2023 had a lot of consensus views, with most predicting a much better year ahead, helped by supportive rate cuts from central banks and positive returns from both government bonds and credit.  

George Curtis provides a macro update on fixed income markets and an overview of positioning in the TwentyFour Select Monthly Income Fund. 

A member of the Multi-Sector Bond team outlines the significance of active engagement within the ESG process at TwentyFour, and provides some examples of our recent engagements. 

A member of our Multi-Sector Bond team reflects on a tricky quarter for markets, highlighting the behaviour of the US Federal Reserve, the ECB and the Bank of England and then discusses the ways in which the MSB team have responded to these Q3 events.

A member from our Multi-Sector Bond team provides an update on European banks and AT1s and the bout of volatility they suffered earlier this year, following the US regional bank crisis and Credit Suisse.

Johnathan Owen, Portfolio Management, reflects on why the AT1 market has been brought into the spotlight this year, following the events of the US regional banking crisis and Credit Suisse.

After what can only be described as a relatively dire year for fixed income in 2022, during which spiralling inflation led to one of the most aggressive rate hiking cycles on record, we believe the market for bonds is now looking much healthier.

Since the last Federal Open Market Committee rate decision on September 20, rates markets have sold off very aggressively. And, despite rates being left on hold, the hawkish message, which included the possibility of another hike this year and less cuts next year than previously forecast, was one of the key contributing factors behind the ~55bps increase in the 10-year treasury in the 10 days following that meeting.

George Curtis, Portfolio Management explores how our portfolio will perform in the event we don’t get the expected soft landing.  

This paper takes a deep dive into the flourishing ESG sector and examines the trends, challenges, and opportunities that have emerged in recent years, with a particular focus on data quality, the expansion of ESG labelled bonds, action from central banks and whether or not the green premium or ‘greenium’ makes sense for issuers.

Eoin Walsh shares his thoughts following last night's statement from the Federal Reserve, concluding that for now while treasury yields aren’t helping, credit looks attractive based on the rosy economic forecasts.