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Credit Markets: Volatility, Liquidity and Value

  • ,  Senior Investment Writer |
  • 23 Nov 2022

credit update

Where should fixed income investors look for opportunities?

This year has been a challenging one for fixed income investors. Volatility caused by higher interest rates has triggered repricings across all parts of the credit universe: loans, bonds, and structured products – none have escaped the storm. This compendium looks at the key dynamics underpinning a diverse and global fixed income market.

Accessing CLOs: Risk, Return and Liquidity Considerations (Nuveen)

CLOs have a long history of successfully weathering different credit cycles. Investors are beginning to take another look at the asset class.

European High Yield - Planning for Yields to Peak Soon (PGIM Fixed Income)

European high yield bonds provided an 8.61% yield at the end of September - an attractive proposition. However, investors should expect yields to peak soon.

We Have Been Expecting You, Mr. Bond! (MFS)

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

Why should investors consider fixed income assets at this point in the cycle? This paper offers five reasons for why fixed income is more attractive than equities.

Refocus on the Syndicated Loan Market in Europe (Franklin Templeton Investments)

For compliance reasons, this paper is only accessible in the EMEA region

The European syndicated loan market is seeing renewed attention. Higher inflation and tighter monetary policy have led to a repricing of these assets.

Is 3% the New 2%? Sizing Up Higher Inflation Targets (Goldman Sachs AM)

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

The new normal for the inflation regime is higher prices - how much and for how long remains up to debate. This paper examines different scenarios for higher inflation targets.

What’s Behind China’s Falling Corporate Bond Yields? (Eastspring Investments)

China’s onshore corporate bond market remain at historical lows. What has been driving the sector and what can investors expect from it going forward?

Quantitative Buybacks (Fed Guy)

A Treasury buyback program would be mechanically equivalent to quantitative easing, providing more liquidity for fixed income assets and broader markets.

Liquidity in Core Government Bond Markets (Financial Stability Board)

This paper looks at the dislocations experienced by fixed income investors during 2020 as a way to understand the important liquidity dynamics of bond markets.