TwentyFour Blog | Read | 2 min 23 Jun 2022 by Pierre Beniguel Will high yields stay high? For all of these observations, there is one common observation – yields did not stay at these high levels for very long. Read more
TwentyFour Blog | Read | 2 min 24 May 2022 by George Curtis European high yield supply drought will ease European high yield supply has endured its weakest start to a year in over a decade. The total supply to May 13th equalled €12.89bn, a fall of 75% year on year, with the market effectively closed for a large portion of the year. Read more
TwentyFour Blog | Read | 2 min 24 May 2022 by Mark Holman What has driven yields higher – rates or credit? With investors having endured a painful period of rising yields in 2022, Mark Holman looks at whether rates weakness or credit spread widening has been most to blame. Read more
TwentyFour Blog | Read | 3 min 17 May 2022 by Elena Rinaldi CLOs have the fundamentals to absorb recession As inflation continues to outstay its welcome in the global economy, we have previously discussed the impact of rising input costs on corporates and how crucial pricing power can be in such a challenging environment. Read more
TwentyFour Blog | Read | 3 min 16 May 2022 by George Curtis Even in recession, defaults will be lower than previous cycles The vast majority of the high yield universe used the attractive funding conditions last year to term out their maturity profiles. In fact, 2022 maturities in both US and European high yield equate to just 1% of their respective indices. Read more
TwentyFour Blog | Read | 2 min 13 May 2022 by Eoin Walsh Return of bond-equity correlations could offer respite for investors The broad-based sell-off that has faced investors since the start of this year has been all the more painful because of the breakdown in traditional correlations, which has put conventional hiding places out of reach. Read more
TwentyFour Blog | Read | 2 min 12 Apr 2022 by George Curtis Taking stock of recent bond moves So far, most fixed income asset classes have experienced a tumultuous 2022. With high yield markets bucking the trend in recent weeks, George Curtis takes a closer look at the drivers of the sector’s recent strength and its current opportunity set. Read more
TwentyFour Blog | Read | 3 min 25 Mar 2022 by Felipe Villarroel The evidence doesn’t point to recession Growth in 2022 is likely to be above historical averages for most developed economies, even after adjusting forecasts for the impact of the Russian invasion. Read more
TwentyFour Blog | Read | 4 min 17 Mar 2022 by Gordon Shannon Wave of inflation means companies will sink or swim on pricing power Soaring inflation was already a dominant theme for markets coming into 2022. The sanctions imposed on Russia in response to its invasion of Ukraine have only exacerbated its expected rise, and pushed its expected peak further out. Read more
TwentyFour Blog | Read | 2 min 9 Mar 2022 by George Curtis Rising HY defaults more than priced in Default rate estimations depend on how you define defaults and what index you use, but there is no doubt we are at record lows in European high yield at the moment. Read more
TwentyFour Blog | Read | 2 min 3 Mar 2022 by Mark Holman Investors are overreacting to banks’ Russia exposure European bank equity has been among the hardest hit sectors since Russia’s invasion of Ukraine, as fears of losses and a flight to quality have prompted investors to change positioning. Read more
TwentyFour Blog | Read | 2 min 21 Feb 2022 by Gary Kirk Steady Fed makes short end look attractive Escalating geopolitical tensions have contributed to a volatile past week for investors, but uncertainty regarding central bank action continues to dominate the bond markets, with one investment bank now predicting nine straight hikes from the Fed beginning at its March meeting. Read more