The TwentyFour Blog
Providing a diverse offering of market commentary from global, political and macro outlooks.
TwentyFour
Capital, Calls and Comfortable Coupons
The cycle of banks calling outstanding capital bonds continued this week and we’ll soon be bidding fond farewells to two of our long held and favourite positions; Nationwide’s 6.875% Additional Tier 1 (CoCo) and Barclays’ 14% hybrid Tier 1.
TwentyFour
Diligence Due in AT1 as Spreads Tighten
Since the start of the year credit markets have been very well supported, reversing much of the sharp period of spread widening we experienced in the final quarter of 2018.
TwentyFour
Have European Regulators Just Tightened Financial Conditions?
The ECB published the result of its Supervisory Review and Evaluation Process (SREP) yesterday, which increased the average capital requirements for European banks, and overall, increased the average SREP requirement by approx. 100bps.
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.
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This Time Next Year 2018
After what has been a terrific year for risk in 2017, making our predictions for the upcoming year is all the more challenging. The risks we won’t be taking seem to be much easier to list than those that we will, so we’ll start with those. But before we embark on 2018, we should review our predictions for 2017.