Public Debt vs. Private Debt Markets
Where are the best opportunities across fixed income?
As unpredictable as the weather has been in many countries lately, so has the fixed income universe been. The big question is how allocators can find opportunities in this highly uncertain environment. The insights below can help.
PUBLIC DEBT
5 Reasons to Be Active in Fixed Income in 2024 (Wellington Management)
Advocates of index-replicating fixed income strategies argue that active managers cannot consistently outperform the Bloomberg U.S. Aggregate Bond Index. Are they right?
Q2 2024 Credit Outlook: Land of Opportunity amid the Hazards (Man Group)
In this environment, it is important that portfolio managers are free to execute their strategies as they see fit within pre-agreed risk limits.
A World in Debt: U.S. Treasuries (MetLife IM)
There have been discussions about U.S. debt for decades. Are these worries founded on actual data or not?
European High Yield: High Yield, High Expectations (MFS)
While the valuations of a number of asset classes now look stretched, that is not the case for European High Yield, which looks very attractive.
3 Reasons for a Strategic Allocation to High Yield (Polen Capital)
Although high yield and equity markets have produced similar total returns over the last 25 years, there is a clear difference in their risk-adjusted performance.
High Income with IG-Like Volatility (Shenkman Capital Management)
Many institutional and high net worth investors have increasingly allocated to short duration high yield in recent times. Find out why.
Global Debt Report 2024 (OECD)
This report contains 150 pages of in-depth analysis on the state of global debt, highly relevant to any fixed income investor.
PRIVATE DEBT
How Private Equity Fuels Non-Bank Lending (U.S. Federal Reserve)
This paper shows that a loan’s PE backing substitutes for bank monitoring, allowing banks to retain less skin-in-the-game.
Risk-Adjusting the Returns to Private Debt Funds (Fisher College of Business)
Private debt is one of the largest and fastest-growing asset class of the private capital market, with about $1.5 trillion in assets under management as of 2023.
Private Credit Insights: The Collateral Crunch (and How to Avoid It) (Voya IM)
In some ways, middle market and commercial mortgage lending are two of the more misunderstood sectors in private and specialized fixed income right now.
Understanding Private Credit (Ares Management)
This in-depth report provides allocators interested in private debt with all they need to fully understand this dynamic asset class.
European High Yield and Leveraged Loan Report (AFME)
In 2023, issuance of European high yield bonds rose 45%, a large increase from the sharp decline observed in 2022, when deal value fell by 72%.
