Multi-Sector Bond Quarterly Update – January 2023
A member of our Multi-Sector Bond team discusses recent market developments in Q4 2022 and provides his outlook for the year ahead.
Insights Topic
UK
First results from great QT experiment are positive
With many market participants fearing the impact of quantitative tightening (QT), Johnathan Owen looks at one central bank’s early experience of actively selling bonds to investors.
Are storm clouds gathering over the UK housing market? Part two…
In the second instalment of a two-part blog on the UK housing market, Shilpa Pathak stress tests UK RMBS to determine how high mortgage defaults would have to get before bondholders are impacted.
Nationwide deal highlights surge in ABS interest and income
Higher rates mean the income available on AAA RMBS bonds is eight times what it was at the start of this year, and growing demand for this floating rate asset class is clear, says Kevin Law.
The Rodney Blog 2023: A return to returns
In our annual ‘Rodney Blog’, Eoin Walsh says that with rates now offering both yield and downside mitigation, and credit yields at near-decade highs, fixed income investors could enjoy strong returns in 2023
Are storm clouds gathering over the UK housing market? Part one…
In the first of a two-part series on the UK housing market, Shilpa Pathak looks at the experience of previous recessions and argues fundamentals today look far stronger than they did either in 2007 or the early 1990s
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.
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.
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.
Has the UK risk premium gone too far?
With some UK bank bonds now trading with higher yields than their counterparts in Turkey, Mark Holman questions whether the dumping of UK and sterling assets has gone too far.