Is Portugal expensive, or is Italy cheap?
When valuations in fixed income are this stretched, we must be on the lookout for overbought assets to avoid, and unloved assets offering a rare opportunity to pick up yield.
Insights Topic
TwentyFour Blog
It’s Still All About The Fed
A lot has been packed into a short week but, despite all the political posturing and rhetoric surrounding trade tariffs, it is still central bank policy that ultimately drives market sentiment and this week we have seen key inputs from leading players at the most important central bank of all, the US Federal Reserve, that have been somewhat overshadowed by more sensationalist news from the political arena.
Looking at all of the Dot Plots
Last Wednesday the Fed raised interest rates in the US for the sixth time since it began this hiking cycle at the end of 2015.
Hammer Time? No it’s Politicians’ Time
On Sunday Lewis Hamilton begins his quest for a 5th Formula One World Championship.
Comparing Yields in Different Currencies
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.
Roll Down explained
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.
Aviva Upsetting The Equilibrium
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.
Surprise or Shock to the System
One of the most important considerations for us as bond investors is determining where we are in the economic cycle.
CLOs 5 years on
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.
Wishing Upon 5 Star
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.
Going it Alone
All good things must come to an end, and from today UK bank treasurers face life without the Term Funding Scheme (TFS).
Fishing For The Brexit Premium
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.