What everyone is talking about in Switzerland
UBS announced a call of its low-reset 5% Additional Tier 1 (AT1) notes on Monday, showing call risk in the AT1 sector isn’t just a matter of economics, says Dillon Lancaster.
Insights Topic
Europe
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
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.
ABS liquidity is there when you need it most
With the UK pension fund liquidity crisis sparking heavy selling in ABS, Pauline Quirin looks at how the market absorbed all the supply, and which investors have stepped in sensing a buying opportunity.
Credit quality deterioration is inevitable
Credit metrics will continue to deteriorate in the next year or two, but European high yield bonds in particular are pricing in too severe a downturn, says Mark Holman
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.
Are Europe’s winter prospects warming up?
With European energy prices well off their peaks, Felipe Villarroel breaks down the myriad factors impacting the region’s economic prospects in the next few months.
To call or not to call – who decides?
With a surprising statement issued by the Australian regulator, Eoin Walsh looks at the wider implications for the calling of AT1 bonds
Multi-Sector Bond Quarterly Update – October 2022
George Curtis looks at market conditions in the third quarter of 2022 and his expectations for the rest of the year.
AT1s: when refinancing a 5% bond at 7.25% makes sense
With call risk in Additional Tier 1 (AT1) bonds back in the headlines, Felipe Villarroel explains how banks think about the economics of calling, and why he believes market participants frequently overestimate this risk.
Rates stability would be a game-changer for fixed income
With central banks speeding through their hiking cycles, a return to rates stability (elusive thus far) could allow investors to reap the rewards of bond yields that are unusually high for this point in the cycle.