Hints and tips:
Related Special Reports
...Demand for riskier corporate bonds is intense. The spread between higher yielding (riskier) bonds and safer Treasuries is narrowing, and nearing long-term lows....
...High-yield issuance has also accelerated, rising 64 per cent year-on-year to $62bn — the highest total in three years....
...This is an audio transcript of the Unhedged podcast episode: ‘High-yield bond bonanza’ [MUSIC PLAYING] Ethan WuCorporate bonds — debt issued by companies — they’re red-hot right now....
...High yield at a yield of 8 per cent looks even better… Credit spreads of 95 basis points in investment grade corporates and 325 bps on high yield are towards the tighter end of their long-term ranges, but...
...The report explores a lot of the arguments against passive bond investing — such as negative skew in the distribution of returns, bad benchmarks, practical challenges in running passive bond portfolios and...
...Allianz’s CEO Oliver Bäte noted how yields falling for 20 years to zero and then suddenly rocketing higher is “the bond managers’ nightmare”, but said that 2024 inflows were already approaching last year...
...That compares with flows in to European-listed ETFs investing in US high-yield bonds of just under $200mn....
...At current levels, the jump in yields — which move inversely to price — would respectively rank as 2024’s third- and fifth-largest increases for the two-year and 10-year bonds, according to LSEG data....
...All-in yields remain very high for many—above the psychologically relevant 10% threshold....
...Government bonds on both sides of the Atlantic have sold off this year, pushing yields higher, as investors scaled back their expectations of imminent rate cuts....
...The shift in rate expectations has hit bond markets, with yields, which move inversely to prices, rising sharply....
...Sure, a CCC-rated PIK bond looks better than a defaulted bond in your portfolio. But, as S&P puts it when explaining why U.S....
...To the extent this continues, it would be beneficial to future earnings given the enhancement to book yields [or the weighted average coupon of a lifer’s bond portfolio]....
...alike,” said Mike Riddell, a bond fund portfolio manager at Allianz Global Investors....
...Apparently some German investors had loaded up on them simply because they offered juicier yields than Uruguay’s dollar bonds even after hedging for the different currencies....
...That has also fuelled spread tightening across the board and increased the appeal of European bonds with relatively high yields....
...But if I showed you a bond that was win two, lose one, that’s a better bond! Markets adjust to that bond’s positive convexity, though, so you’d get paid less yield. But how much less yield?...
...Private investors have piled into UK government bonds this year to lock in attractive yields as the Bank of England has kept interest rates at a 16-year high....
...Last autumn, Treasury yields hit a 16-year high....
...Higher yields bode well for the 60/40 portfolio, because they allow more room for prices to rise and for the bond component of the fund to perform well....
...“There’s a lot of pent-up demand by sponsors to have market access,” said Kevin Loome, US high-yield portfolio manager at T Rowe Price....
...With the BoJ buying bonds at barely that pace, small adjustments to the purchase schedule could tip the portfolio into decline....
...This means only the bond, dividend or rental income generated by the fund or portfolio is available for withdrawal....
...Benchmark US and UK government bond yields are up 0.6 percentage points since the start of the year. Equivalent German Bund yields — the benchmark for the eurozone — are up 0.3 percentage points....
...At 75 per cent, the recovery rates within the GEMs data set surpass those reported for Moody’s Global Loans at 70 per cent, Moody’s Global Bonds at 59 per cent, and JPMorgan Emerging Market Bonds at 38 per...
International Edition