UK

Elena Rinaldi lays out analysis from the team's recreation of the BoE's bank stress test from a mortgage default and loss point of view, applying it to a benchmark UK RMBS BBB-rated bond. Ultimately finding that this type of analysis gives us confidence that the UK RMBS market can withstand stresses beyond those applied by the BoE.

Felipe Villarroel looks at the preliminary numbers for July PMI Manufacturing and PMI Services data, and how from a markets point of view, he thinks volatility will remain in place while both rates and spreads should trade in a range as we await for more clarity on whether inflation will allow Central Banks to pause and the extent of the slowdown in H2, particularly considering August is looming.

What level of risk are investors willing to take? As central bank rates hike and a soft landing narrative makes its way into analysts’ forecasts, Eoin Walsh takes a look at what affects this has on investment risk and reinvestment risk.

There has been a noticeable pick up in the European ABS new issuance market this year, with demand far outstripping supply. John Lawler looks at what makes a UK RMBS deal ‘Prime’, and why not all deals are the same.

Following higher than expected inflation data in the UK, Gordon Shannon looks at the knock on effects within the Gilt market and the increased pressure on the Bank of England.

Last week saw three UK Prime RMBS deals served up to ABS investors, the most liquid part of the European ABS market. In our latest blog we hear from Douglas Charleston who analyses these recent deals and what it means for this market segment.

Yesterday’s CPI Report from the Fed gave reasons for optimism. Read Felipe Villarroel’s analysis of the report and what it could mean for the Fed’s uncomfortably long battle against inflation.

In the last few weeks the high yield primary market has seen a resumption of issuance which Portfolio Manager George Curtis believes points to a relatively buoyant market.

Douglas Charleston looks at the wider implications of recent bank sector volatility and the opportunities it presents for credit investors.

The Bank of England joins the European Central Bank in stating that there is a clear hierarchy when it comes to a resolution or an insolvency scenario.

February was a nasty throwback to the sort of market conditions that battered fixed income in 2022, but the pull-back has given anyone worried they’d missed the January rally an even better opportunity, says Charlene Malik.

With UK consumers holding on to more of their pandemic-era savings than their US counterparts, Felipe Villarroel looks at what it means for bond investors.