Opportunities for Fixed Income Managers
Timely insights into the latest developments of debt markets
Fixed income markets battered investors’ portfolios last year. For example, during 2022, the Barclays Global Aggregate Bond Index returned a negative 17.7%, its worst performance since 1980. However, the research below highlights some areas where opportunities may abound.
Are Bond Investors Ready for What Comes Next? (Man Group)
The general view of the market is that central banks, such as the Fed, will pivot to a more supportive monetary policy stance.
European Loans: Defensive Against Rising Rates & Uncertainty? (M&G Investments)
For compliance reasons, this paper is only accessible in certain geographies
European loans sit in a unique middle-ground space, being able to offer the benefits of private investments, while also providing liquidity.
The Big Mac On Fixed Income Opportunities: What's On The Menu? (MFS)
For compliance reasons, this paper is only accessible in certain geographies
Among fixed income products, European IG Credit currently screens as the most attractive asset class. However, there are also opportunities elsewhere.
Quarterly Loan Market Commentary (Partners Group)
CLO managers should undertake necessary portfolio actions to assure key CLO compliance metric tests are passed to allow quarterly CLO equity distributions to continue unabated.
Do Retirement Savers Need to Adjust their Fixed Income Allocations? (Nuveen)
When examining the corporate bond market, Nuveen does not expect defaults to rise to levels seen in more severe recessions.
Short Duration Fixed Income: New Environment, New Opportunities (MetLife IM)
The degree to which the yield curve has inverted, especially at the very front-end of the maturity spectrum, has created an opportunity.
Hiking at $60b a Month (Fed Guy)
Deposits rates are slowly rising to reflect the Fed’s restrictive stance as commercial banks compete for funding.
Market-Function Asset Purchases (FRBNY)
Debt managers typically look to the short-maturity segment as a first step when funding needs suddenly increase.
