Fixed Income Investing in a World of Volatility
Are investors about to see another debt crisis?
With some global banks in turmoil once more, investors have shifted their attention to that part of the financial world which can carry stress from one institution to the rest of the system: the credit market. To help allocators make up their own views on the fixed income universe, we have put together the selection of research below.
The Breadth of Benefits in Global High Yield (PGIM Fixed Income)
Changing conditions across regions has become one of the defining characteristics of the current market environment. Where can fixed income investors find opportunities?
Fixed Income 2023: Ripe For A Reversal (Wellington Management)
Despite recent uncertainty, looking more broadly across credit markets, forward-looking returns appear promising in some sectors. Credit investors have to be selective.
Q1 2023 Active Insights: Interesting Times? (LGIM)
For compliance reasons, this paper is NOT accessible in the United States and Canada
This quarterly report looks at fixed income markets from different angles, including monetary policy and the rising wave of AI trading.
Covered Bond Outlook 2023 (Scope Ratings)
The European banking sector exited the pandemic with little to no damage. However, recent events have brought uncertainty.
Lessons from the 2022 LDI Intervention (Bank of England)
For compliance reasons, this paper is only accessible in the United Kingdom
This paper shows that in the LDI case, early warning required the use of qualitative as well as quantitative market intelligence.
Podcast: Banking Crisis, FOMC, 0DTE w/ Charlie McElligott (Macro Voices)
In this in-depth podcast, Nomura’s Charlie McElligott talks about the underlying forces across multiple credit markets. Will the stress in the banking sector spill over?
Principles For Navigating Big Debt Crises (Bridgewater Associates)
Ray Dalio's well-known analysis of debt cycles and crises is a must read given what is happening across the banking sectors in North America and Europe.
Derivative Margin Calls: A New Driver of MMF Flows (ECB)
Money market funds are important instruments that invest in short-term credit instruments. Derivative margin calls can destabilise this market, however.
