Fixed Income

Following Chairman Powell’s speech last night, George Curtis looks at what the latest labour market data means for the Fed’s war on inflation.

Bids Wanted in Competition (or BWIC) lists are a unique characteristic of the ABS and CLO markets, where they are widely used in secondary trading when investors are looking to sell bonds.

Inflation is widely understood to be bad for bonds. Fundamentally, this is because inflation erodes the value of the coupon and principal payments that fixed rate bondholders receive in the future.

With investors caught between inflation and recession, TwentyFour Asset Management’s Chris Bowie argues current valuations in short term, investment grade bonds can offer portfolios both downside protection and attractive yields.

China’s authorities have recently revealed coordinated measures to alleviate the pressure on its property sector. The government tried to help the sector in the past year but failed; however, this time could be more determined and effective.

Corporate earnings for the third quarter are currently being released. In contrast with widespread expectations of weaker results, companies have posted solid figures so far. Christian Hantel, portfolio manager at Vontobel, explains what this means for investors.

The second round of the Brazilian presidential elections is taking place this Sunday. The race is now tight with polls showing Luiz Inácio Lula da Silva and Jair Bolsonaro in a technical tie despite the former keeping a small lead inside the error margin.

Looking back to previous cycles in the high yield market, data have shown down periods have usually given way to strong returns years. While spreads are set to stay volatile until inflation starts to slow down, Portfolio Manager Stella Ma sees valuations becoming more attractive as we near the end of 2022.

TwentyFour Partner and Portfolio Manager, Douglas Charleston, explains how ABS markets have performed in Q3 2022 and provides his outlook for the rest of the year.

TwentyFour Portfolio Manager, Johnathan Owen, explains how investment grade markets have performed in Q3 2022.

George Curtis looks at market conditions in the third quarter of 2022 and his expectations for the rest of the year.

The experts provide a review on the developments in Q3, the current positioning of the strategies as well as an outlook for Q4 2022.