TwentyFour Blog | Read | 2 min 11 Aug 2022 by George Curtis Hint of inflation peak further fuel for fixed income Investors are eyeing a peak in inflation once more after US data came in lower than expected for the first time this year, and with credit finally seeing positive flows again, George Curtis sees markets grinding tighter over the rest of the summer. Read more
TwentyFour Blog | Read | 4 min 8 Aug 2022 by Pauline Quirin There is plenty more yield to come in floating rate bonds Fixed rate bond yields may have climbed as markets priced in higher interest rates, but both existing and new investors in floating rate bonds have more to gain as central banks keep hiking, says Pauline Quirin Read more
TwentyFour Blog | Read | 2 min 5 Aug 2022 by Eoin Walsh "Abandon all hope ye who enter here" With the Bank of England doling out a double dose of doom on UK inflation and growth on Thursday, Eoin Walsh says it is refreshing for investors to get such a candid assessment from a central bank. Read more
TwentyFour Blog | Read | 3 min 29 Jul 2022 by Dillon Lancaster What is the AT1 market pricing in? With bank Additional Tier 1 (AT1) bonds broadly trading at a 10% discount to par and many being priced to perpetuity, Dillon Lancaster suggests investors are either missing or ignoring the solid fundamentals on show in Q2 earnings. Read more
TwentyFour Blog | Read | 3 min 28 Jul 2022 by Pierre Beniguel Why 85 is the new par in high yield Pierre Beniguel explains why high yield issuers are selling new bonds at steep discounts to par value, and why this represents an opportunity to build potentially significant performance into fixed income portfolios going forward. Read more
TwentyFour Blog | Read | 3 min 27 Jul 2022 by Kevin Law Barren Q2 suggests autumn opportunity in ABS European ABS issuers largely held off on printing new deals in Q2 as broader market volatility saw spreads widen, but we are already seeing more investor-friendly structures and many favoured names are likely to bring deals offering markedly higher yields when activity picks up again. Read more
TwentyFour Blog | Read | 3 min 26 Jul 2022 by David Norris Upcoming US earnings season sheds light on the health of corporate America With earnings season entering full swing, David Norris highlights some indicators to look out for when assessing the current state of the US economy and the resulting actions expected from the Fed. Read more
TwentyFour Blog | Read | 3 min 19 Jul 2022 by Eoin Walsh US bank chiefs still like the consumer US banks remain bullish about the health of the consumer, but credit spreads are still pricing in not only a recession, but a fairly severe one. Are the banks wrong? Or have credit markets just backed up too far on negative fund flows? Read more
TwentyFour Blog | Read | 3 min 15 Jul 2022 by Elena Rinaldi Why are CLOs pricing in a worse recession than Moody’s? With yields on B rated CLO bonds now as high as 18%, Elena Rinaldi looks at various scenarios for corporate default rates and questions why investors are overshooting even the most pessimistic scenarios. Read more
TwentyFour Blog | Read | 5 min 14 Jul 2022 by Johnathan Owen Buy now while spreads last With corporate bond spreads having risen to not far short of crisis levels, Johnathan Owen argues the 4%-plus yields on offer in short dated investment grade are an attractive entry point for investors that might not be around for long. Read more