The latest insights for fixed income investors

The latest insights into the changing world of debt markets

PIMCO CIO Dan Ivascyn recently commented that investors should move away from a 60/40 stocks and bond allocation and toward 40/60 instead. Clearly, the fixed income environment is changing, making for difficult investment decisions. Below we present relevant and timely content that will help allocators understand around today’s markets further.

Alternative Credit Insights for H2 2024: Investing for Resiliency (Nuveen)

Economic and geopolitical certainty seems a long way off in the current environment, and uncertainty is rarely good for investors.

The Impact of Higher for Longer on High Yield (MFS)

For compliance reasons, this paper is only accessible in certain geographies

Historically, there has been a strong relationship between the rise in central bank policy rates and a subsequent rise in high yield corporate defaults.

Active Fixed Income Perspectives Q3 2024: The High Road (Vanguard)

For compliance reasons, this paper is only accessible in the United States

In recent months, the worst-case fear for bonds—a reacceleration in inflation and likely higher interest rates—has faded. Will this concern remain subdued?

U.S. Treasuries in the Post-Pandemic Era (MetLife IM)

The COVID pandemic brought on a wave of government stimulus spending and pushed the global public debt-to-GDP ratio above 100%. How has this affected the U.S. Treasuries market?

Financing Private Credit (FRBNY)

A large amount of literature since the global financial crisis has established that private credit expansions predict negative real outcomes. But is this consensus correct?

Global Debt Mid-Year Outlook 2024 (Invesco)

Investing in global rates continues to be a challenge, as global yield curves have remained inverted for an extended period.

Korean Treasury Bonds: An International Perspective (ICMA/Bloomberg)

How do international market participants perceive the Korean Treasury Bond markets? This survey offers plenty of insights into this question.

Walking a Mile in Fed Chair Powell’s Shoes (Wellington Management)

Everybody is watching what the Fed will do next, but how many investors actually understand the difficult task the U.S. central bank has?

Complementarity of Sovereign and Corporate Debt Issuance (Review of Finance)

The authors of this paper show that government bond issues can increase, rather than reduce, the issuance of corporate bonds of the same maturity.