Supply points to Selectivity?
Doing the necessary work to understand the difference between companies merely exposed to COVID restrictions and those structurally damaged by them continues to be extremely important.
Insights Topic
Multi-Sector Bonds
Punch Pubs Sees Off WBS and Shows Route to Bonds
All told, while we think relative value in WBS can be attractive, we believe the trend of refinancing in the bond market is only going to continue in the coming years, though it will be gradual.
Your Lufthansa Coupon Has Been Delayed, But Not Cancelled
Last week there was a rare occurrence in the high yield market as German airline Lufthansa announced it would be deferring the coupon on a hybrid bond issued in 2015.
A New Low for Investor Protection in Euro High Yield
Primary deals launched in the European high yield market over the last two weeks have been diverse, and at times opportunistic.
GBP High Yield Closing the Gap?
The last few weeks has seen healthy issuance in the high yield space, including multiple billion pound deals, the most recent of which, Asda, priced on Wednesday. This was an interesting deal for a few reasons, not least because it is the largest sterling high yield deal of all time
ESG Covenants in High Yield
Ultimately, the fact that the Klockner deal is not marketed as a green loan but still includes ESG-related covenants is proof that ESG needs to be integrated into an investor’s credit work as a matter of course, something we have been arguing for years.
Time to Test The Water in CCCs?
We think it is indeed time to begin the search for recovery stories and deleveraging credits in sectors where the execution strategy is likely to succeed.
Default Peaks May Already Be Behind Us
We think this current pause in the global rally is healthy and gives investors a rare moment to reassess, but from a fixed income credit point of view we would not expect too much of a dip.
Comprehending The Brexit Premium
In our view the rationale for the premium is certainly weakening and, of course, we can no longer call it a ‘Brexit’ premium.
Trio of HY Deals Could Set Tone for 2021
For high yield issuers 2021 has started in a similar vein to 2020, with the technical backdrop providing an attractive environment for capital raising.
Where Yields Are Higher Than High Yield
At the moment CLO spreads are tightening, as they are right across credit. However, we haven’t had any CLO primary deals come to market so far in 2021, so we are operating in a bit of an informational vacuum, at which point these cross-asset class comparisons can be useful.
Fast Moving Cycle
As we have said many times over the past few months, this cycle is likely to be remembered (among other reasons) as being exceptional for its unprecedented momentum.