TwentyFour Strategic Income Strategy

George Curtis looks at market conditions in the third quarter of 2022.

With central banks speeding though their hiking cycles, a return to rates stability could allow investors to reap the rewards of bond yields that are unusually high for this point in the cycle.

Partner and portfolio manager, Eoin Walsh, delivered the keynote address at the TwentyFour Fixed Income Conference in London on September 13.

Asset-backed securities (ABS) are a type of bond, typically issued by banks or other lenders. What makes ABS different to conventional bonds, such as government or corporate bonds, is that they are ‘secured’ against a diversified pool of loans with similar characteristics.

Additional Tier 1 bonds (AT1s) are part of a family of bank capital securities known as contingent convertibles or ‘Cocos’. Convertible because they can be converted from bonds into equity (or written down entirely), and Contingent because that conversion only occurs if certain conditions are met, such as the issuing bank’s capital strength falling below a pre-determined trigger level.

A member from our Multi-Sector Bond team reviews the main market drivers in the second quarter of 2022 and explains how the Strategic Income team is tackling today’s environment.

Gordon Shannon reviews Q2 2022 in fixed income and breaks down the resulting risks and opportunities he sees in short term bonds.

Douglas Charleston looks at the development of the European ABS market in the second quarter of 2022 and explains what this could mean for investors going forward.

Here we lift the lid on how typical ESG scoring models work in fixed income, with the help of some real-world examples that will help explain why some companies score well and others poorly. Some of the results will surprise you.

With fears of recession growing, defensive assets like US Treasuries suddenly look to be back in fashion. How can investors prepare their portfolio for recession?

Collateralised Loan Obligations, or CLOs, are bond instruments issued to fund a specific pool of loans, typically senior secured or ‘leveraged’ loans, to companies. The bonds are split into tranches that can carry different ratings (and yields) according to how senior they are in the CLO’s capital structure, normally from AAA notes at the top to equity notes at the bottom.

TwentyFour Portfolio Manager, Elena Rinaldi, explains how European ABS markets behaved in Q1 2022 and provides her outlook for the year ahead.