Market Update

With its most recent escalation, the Israel-Hamas conflict now threatens to spread and become a broader conflict in the region.

Corporate hybrids are bonds issued by companies that combine characteristics of both debt and equity.

What does the environment look like for Credit in 2024? And what are the fundamentals for emerging-market corporates this year? Wouter Van Overfelt and Mondher Bettaieb-Loriot discuss some of the hot topics for fixed income in emerging markets and developed markets, respectively.

January is on track to be a standout month for EM debt issuance. Our Fixed Income boutique’s Sergey Goncharov reviews which sovereigns and corporates are issuing EM debt and takes the pulse of the current environment that they’re operating in.

2023 proved to be a second year where European ABS gave investors the strongest returns in fixed income with the benefit of very low volatility. As risk-free rates grew to what we expect to be the peak, income was maximised whilst the various market pivots on rates came and went in the rear view mirror.

While bonds are once again finding their feet, investors have found themselves sitting on cash balances of 30% to 50%. This capital preservation trade has made perfect sense, but does it still make sense as we reach terminal rates?

It is our view that without a doubt 2022 was a year to forget for the bond market. Whether you held government bonds, high end corporate credit or riskier high yield paper, you would have taken a knock as steep increases in interest rates across the globe sent bond prices tumbling. 

After what can only be described as a relatively dire year for fixed income in 2022, during which spiralling inflation led to one of the most aggressive rate hiking cycles on record, we believe the market for bonds is now looking much healthier.

Partner and Portfolio Manager Chris Bowie discusses recent Q1 events and gives an outlook for Investment Grade for the next quarter.

With the collapse of Silicon Valley Bank dominating media headlines and fueling questions among investors, Mario Montagnani explains why our Multi Asset Boutique believes it is a company-specific, isolated case.

Inflation may be like gum on your shoe – annoying and, above all, hard to remove. Sticky inflation is a scenario that has been in the cards for quite a while already but now seems to receive more weight as a probable outcome. There are six reasons for this display of stubbornness which may disappoint those who thought inflation would come off easily.

TwentyFour Portfolio Manager, Jack Daley, discusses how the short term bond strategy has performed in Q4 2022 and provides his outlook for the new year.