Is Emerging Markets Debt Attractive Today?
Despite seemingly high yields, today is not a particularly attractive time to buy emerging markets debt, whether hard currency or local currency.
Credit/Fixed Income
Given the Recent Backup in Yields, Should Investors Look to Add High-Yield Exposure?
Yields have indeed risen sharply over the past several months, but given the cyclical nature of the asset class, along with worrisome trends in issuance volume and quality, we still do not find them compelling.
US Manager Universe Statistics: Third Quarter 2015
This chart book presents representative marketable and hedge fund manager performance for third quarter 2015.
Revisiting Fixed Income Investing When Interest Rates Rise
Investors should be wary of modifying their bond exposures solely based on what they think interest rates might do, and focus instead on bonds’ role in the portfolio and on mitigating risk/return asymmetry at current yields.
Why Did the US Federal Reserve Leave Rates at Zero . . . Again?
In this edition of C|A Answers, two members of our Capital Markets Research team provide different viewpoints on the Fed’s recent decision not to raise rates.
US Manager Universe Statistics: Second Quarter 2015
This chart book presents representative marketable and hedge fund manager performance for second quarter 2015.
Review of Market Performance: Fiscal Year 2015
Both the strengthening US dollar and decline in oil prices impacted markets in fiscal year 2015. The year also witnessed a number of reversals, namely strong performance in the second half of the year relative to the first. This brief chart book looks at returns and other market metrics for fiscal year 2015.
The Government Bond Market “Rout”: Technical or Fundamental?
After lying quiescent for many months, volatility has suddenly returned to government bond markets. Many investors have been surprised by the ferocity of the move and are asking themselves whether this is anything more than a tempest in a teacup or the beginning of something bigger. In our view, a combination of fundamental and technical…
Should Investors Be Worried About Corporate Debt Liquidity?
The lack of corporate debt liquidity is certainly worrisome—indeed, it is one of a myriad of similar potential trouble spots—and has some idiosyncratic elements investors should take into account. Observers have been warning of a potential crisis in corporate debt since the 2010 passage of the Dodd–Frank Wall Street Reform and Consumer Protection Act, which…
Alternative Credit Opportunities in Asia
Asia has a structural and cyclical need for alternative credit providers; given where Asia is in the credit cycle, special situations and direct lending strategies should offer attractive risk-adjusted returns Returns for traditional Asian fixed income and credit are unattractive today. However, opportunities remain in the less liquid, underserved, and complex spheres of corporate lending…