Market Update

Partner and Portfolio Manager Chris Bowie provides an update on investment grade credit markets.

The coronavirus pandemic has brought about perhaps the greatest– and fastest – repricing of risk fixed income investors have ever witnessed.

Q1 2020, or more specifically March 2020, will go down in history as a game changer.

Q1 2020, or more specifically March 2020, will go down in history as a game changer.

It has been a challenging couple of weeks for obvious reasons.

As we approach the 10th anniversary of running our Multi-Sector Bond strategies, we have once again hit a period of remarkable market turbulence that has broken records in terms of how quickly prices have deteriorated across markets including fixed income. Consequently we thought it would be useful to share some more detailed thoughts with you on what will be my fifth occasion of writing such a letter. We hope that you find it useful.

These are clearly unprecedented times. We are seeing large gaps down in asset values, large liquidity preference and sometimes positive correlations between risk assets and risk-off hedges.

Chris Bowie outlines the highlights and lowlights for the fund, the successes and challenges, the triumphs and the odd sleepless night.

Ben Hayward looks at the Q4 performance for Asset Backed Securities and provides an outlook for the year ahead.

Chris Bowie looks at the performance of the Outcome Driven strategy over the last quarter and provides his outlook for 2020.

CEO and Portfolio Manager Mark Holman discusses Q4 performance for the Strategic Income strategy and provides his outlook for 2020.

Residential mortgage-backed securities (RMBS) are an under-utilised asset class for many investors, despite boasting some of the lowest default rates across the global fixed income market and offering higher yields and greater investor protections than vanilla corporate bonds of the same rating.