Strike While The Market Is Hot

Companies are taking advantage of strong investor demand in the investment grade credit market. In the first two months of 2024, nearly 200 companies issue roughly $380 billion of new bonds in the U.S. Investment grade primary market. Monthly issuance totals for both January and February blew away the prior three-year averages of $138 billion.

Where The Looming Credit Maturity Wall And The Economy Collide

Is It Time To Move Off The Sidelines?

With the Federal Reserve potentially easing as early as June, generous money market yields may be fleeting. Neuberger Berman sees substantial opportunity in the short-duration, high-quality parts of the fixed income markets. To lock in durable high income, we believe it makes sense to incrementally add interest-rate exposure to portfolios.

Governance Matters: The Proof Is In The Proxy

Research shows a correlation between strong governance and higher stock returns, says Bob Herr and Ryan Oden. They say companies with poor corporate governance practices are prone to mismanagement and weak returns. AllianceBernstein’s proxy-voting track record shows correlation between governance and returns, they say.

Weekly Report: what happened at ESCR last week (0304-0308)?

Can The SEC's Climate Disclosure Mandate Rule The Roost?

The Credit Opportunity In M&A

M&A was almost dormant in 2023. In the US, as a proportion of the market value of the benchmark equity indices, it fell to its lowest level in 20 years. We are seeing a comeback for M&A that we think is likely to continue through 2024. In an environment of tight spreads and low volatility, mergers and acquisitions can be a source of idiosyncratic alpha in credit markets.

Weekly Report: what happened at ESCR last week (0226-0301)?

Income Opportunities In An Evolving Investment Landscape

Ed Perks: The Federal Reserve is now more focused on normalizing its policy and maximizing employment. The Fed's policy actions continue to be front and center for both the fixed income and equity markets. The investment landscape continues to evolve as the Fed responds to economic data. Ed Perks, Chief Investment Officer of Franklin Income Investors, explores the impact of these changes on the markets.

It's Yield... Not Spread

Weekly Report: what happened at ESCR last week (0219-0223)?

Fixed Income Market Expectations In 2024

Michael Goosay, Chief Investment Officer, Global Fixed Income, shares his outlook for the fixed income markets in 2024. He says global central banks may be looking to cut interest rates in 2024 and beyond. He believes fixed income will be an attractive asset class as the economic tightening cycle turns into a pause in and an easing of policy.

Weekly Report: what happened at ESCR last week (0212-0216)?

Weekly Report: what happened at ESCR last week (0205-0209)?

Weekly Report: what happened at ESCR last week (0129-0202)?

Why High Yield Belongs In Your Investment-Grade Income Portfolio

Weekly Report: what happened at ESCR last week (0122-0126)?

Weekly Report: what happened at ESCR last week (0115-0119)?

Corporate Credit Outlook 2024: High Tide For Yield?

Weakening fundamentals shouldn’t scare away corporate bond investors in 2024. Only 10% of the high-yield market will mature by the end of 2025. Investors should favor higher-quality credits, remain selective and pay attention to liquidity. Fundamental metrics are showing signs of deterioration among the lowest-rated credits.

The Weather Is Changing For Climate-Focused Investors

Climate-focused investment is taking advantage of those opportunities. The US has increased investments in renewables, solar and wind, with the aim of reducing carbon emissions by up to 40%. Investing in companies that provide solutions to climate challenges should see strong tailwinds in the years ahead.