Newell: Fallen Angel to Rising Star?
Fixed income investors are well versed in the risks of ‘fallen angels’, investment grade companies whose bonds tumble in value once they are downgraded to high yield.
Insights Topic
US
Taking Back Control
It was a dramatic night last night as the Fed cut interest rates by 25bps, the first cut since December 2008, along with the premature ending to the balance sheet run off – however markets hardly moved!
Powell Talks the Market Down
The dust is slowly settling after Wednesday’s FOMC rate decision, and more importantly the following press conference where Chairman Jerome Powell literally talked the market down.
The ‘Rodney’ Blog 2019: Fake Recession Ahead
“This time next year, Rodney…”
Difficult Markets, But a Time of Plenty for Stock Pickers
It is that time of year when we traditionally look ahead to the new year and make predictions on the performance of various asset classes, sectors and industries.
A (Measured) Buying Opportunity in Credit
There were sharp declines across global risk assets on Tuesday, led by tech stocks but with barely an asset class left unscathed.
UST Issuance Could Hold Key to Length of the Cycle
A question we have been getting more frequently for from clients in recent weeks concerns US Treasuries, and more specifically how the level of UST issuance (and where along the maturity curve it arrives) will impact yields both in the rates market and further afield in the coming months.
Call That a Correction?
A volatile last couple of weeks have certainly kept fixed income investors fastened firmly in their seats, with comments from Federal Reserve chairman Jerome Powell suggesting US monetary policy was “nowhere near neutrality” sending shock waves through global rates, credit and equity markets.
The Fed is Far From Dovish
Having listened carefully to the FOMC news conference last night, the message to us was clear – the Fed is pushing ahead with its normalisation of rates and the gradual shrinking of its balance sheet.
Hedging Costs Can Also Be a Benefit
Those of you who have seen or heard one of our presentations will be aware of the significant impact that the FX-basis currently has on our relative value bond selection.
US Treasuries Break Through 3% on their Way to 3.25%
A few weeks ago we wrote about the geopolitical risks helping to keep credit spreads wider in Europe and the UK and keeping a lid on US Treasury yields (Is It Time to Buy the Dip?).
Farewell To An Old Friend
Last year, with credit spreads tightening close to historic levels, it seemed appropriate to us to take a more prudent stance and move to a more balanced portfolio.