The TwentyFour Blog

Fixed income managers always want to have the flexibility to find the best value across their investment sphere and therefore need the capacity to buy bonds in different currencies.

Several times this year we have discussed the benefits of “roll down” in an environment that for fixed income investing is particularly unfriendly. We believe roll down gains will be one of the best ways to protect portfolios in 2018 from the rising rate curves that we have been experiencing so far.

As bond investors we always need to make sure that the companies we invest with are managing our interests alongside those of other stakeholders in a manner that protects our interests sufficiently. Historically, this aspect of governance has been most relevant to companies run by private equity managers or companies with a single large investor who is in a high ranking executive position.

One of the most important considerations for us as bond investors is determining where we are in the economic cycle.

Five years ago, the European CLO market restarted when Cairn issued the first post-crisis CLO in Europe – the start of the 2.0 market – and after a slow first year we have seen plenty more CLOs coming to market from a large mix of legacy and new managers.

Ballots are still being counted in this weekend’s Italian election but the picture is becoming clear, with two parties emerging stronger from the ashes of a bitter electoral campaign: 5 Star have estimated to have polled 32% and the far right Lega (a.k.a. Northern League) have 18%, but no one coaltion can claim a victory.

All good things must come to an end, and from today UK bank treasurers face life without the Term Funding Scheme (TFS).

Ever since the result of the Brexit referendum we have seen a premium on £ credit spreads, and we have thought it worthwhile trying to exploit this premium – in a measured way.

Last Friday saw the publication of the last electoral poll before the Italian elections that will be held on the 4th of March.

Yesterday the Fed published the minutes of their January FOMC meeting and the message regarding the economy and labour markets continues to be one of strength.

Today marks the start of a very busy week for participants in the US Treasury market.

After a volatile fortnight in the market, we appear to be closing this week in a relatively calm manner.