Don’t Forget the Credit Spread!
While corporate plan sponsors are keenly aware of interest rate risk within their defined benefit plans, few fully appreciate the complex and significant risk posed by credit spreads.
Credit/Fixed Income
Opportunities Arising From Banking Sector Stress in Europe
The vacuum being created by banks withdrawing from previous activities is opening up opportunities for strategies like non-performing loan funds focused on the region.
Do Investors Have Time to Switch Cash Vehicles Before October’s US Money Market Reforms Take Hold?
Yes, although as the mid-October deadline for significant regulatory-driven changes to US money market mutual funds draws near, investors that wait may find themselves with fewer options for funds that will continue to offer stable net asset values.
Are the Forces Creating Record Low Government Bond Yields Here to Stay?
Investors that buy developed markets government bonds have been faced with unpalatably skimpy or even negative yields on offer for some time. The question is no longer why, but for how long? Fed funds futures and benchmark ten-year US Treasuries suggest the answer is several more years, a similar timeline to other markets. But as we know, markets have a tendency to surprise.
US Manager Universe Statistics: Second Quarter 2016
This chart book presents representative marketable and hedge fund manager performance for second quarter 2016.
Investment Publications Highlights: July 2016
July’s publication summarizes two articles discussing fixed income market liquidity. The first highlights a number of worrisome liquidity trends, arguing that policy changes can help improve market function, and the second argues that liquidity has not necessarily improved despite the fact that transaction costs have fallen.
Review of Market Performance: Fiscal Year 2016
Investors grappled with the trajectory of global growth and the dramatic increase in negative-yielding debt in the year ended June 30, 2016. This brief chart book looks at returns and other market metrics for fiscal year 2016.
How Is the Structured Credit Market Changing?
Structured credit markets are being affected by technical factors as investors confront modest new issuance, constrained dealer inventory, and lower liquidity than the norm in recent years.
US Manager Universe Statistics: First Quarter 2016
This chart book presents representative marketable and hedge fund manager performance for first quarter 2016.
Feeling Negative About Sub-Zero Interest Rates
As more countries move from zero interest rate policy (ZIRP) to negative interest rate policy (NIRP) to try to boost growth and conquer deflation, the risks of unintended consequences are rising and investors should tread carefully.