Investment Management

Fixed Income

06/28/2017

The High Yield Market is Shrinking. That Could Be Good News for Investors.

By Randy Parrish, CFA, Head of Credit and Rick Cumberledge, CFA, Head of High Yield

The size of the U.S. high yield market increased steadily from the mid-1980s. Over the past two years, it started to shrink. What does that mean for investors?

06/14/2017

Anatomy of a Credit Market Sell Off

By Kurt Kringelis, CFA, CPA, JD, Head Macro Credit Strategist and Reuben Weislogel, CFA, CAIA, Quantitative Fixed Income Analyst

Historical evidence shows that in order for the overall credit index to widen meaningfully, a large industry needs to experience outsized problems or a handful of industries need to collectively weaken.

06/09/2017

Subprime Auto: Frightening Parallels to the Mortgage Crisis, but is there Systemic Risk?

By Dave Goodson, Head of Securitized Investments, Fixed Income

Recent headlines paint a picture of subprime auto lending as the ticking time bomb for the next “great financial crisis.” But are investors really staring down the edge of a cliff? While a closer analysis reveals undeniable parallels to the mortgage crisis, we don’t believe securitized credit investors should hit the panic button just yet.

06/05/2017

Inflation to Strike Back as Wages Climb and Animate the Fed

By Guy Petcho, Global Macro Portfolio Manager, Fixed Income

For insight into future Fed policy decisions, investors should discount the last CPI prints and focus on wage growth.

05/24/2017

Will the Retail Industry be the Next Commodity Crisis for the U.S. Credit Markets?

By Kurt Kringelis, CFA, CPA, JD, Head Macro Credit Strategist and Reuben Weislogel, CFA, CAIA, Quantitative Fixed Income Analyst

In April, we provided support for allocations to high yield by rebutting three common arguments against the asset class. “Retail is the new energy” was an argument against high yield in April and one that continues today. Given the headlines surrounding the “demise” of retail, we believe it is appropriate to offer investors a deeper analysis of the topic and provide a broader perspective across credit markets.

05/02/2017

VAR, What is it Good For?

By Brian Timberlake, CFA, PhD, Head of Fixed Income Research and Peter-Paul Hoogbruin, FRM, Market and Credit Analysis

While no one measure is capable of capturing the full breadth of risk within a fixed income portfolio, VAR (Value at Risk) is an important measure within an investor’s tool kit. However, like any tool, VAR must be used with a full understanding of its benefits and drawbacks. With this in mind, we set out to answer: VAR, what is it good for?

04/17/2017

Is It Too Late to Buy High Yield? Rebuttals for 3 Common Arguments Against the Asset Class.

By Randy Parrish, CFA, Head of Credit and Rick Cumberledge, CFA, Head of High Yield

Many “experts” have recently warned of impending doom in the high yield bond market. High yield returns have certainly been impressive since the energy- and commodity-led sell-off of late 2015/early 2016, but our view of today’s economic and market landscape doesn’t lead us to the conclusion that the end is near. Rather, we find reasonable value in the market and used the March sell-off to add high yield exposure.

04/10/2017

Global Economic Performance: Who is in the Driver’s Seat?

By Guy Petcho, Global Macro Portfolio Manager, Fixed Income

As global policymakers impact the trajectory of global growth, we explore the true drivers of the markets, and ask how fixed income investors should be thinking about portfolio positioning.

03/20/2017

Credit Spreads Are Tight. But Are They Overvalued?

By Kurt Kringelis, CFA, CPA, JD, Head Macro Credit Strategist

Spreads for U.S. credit are hovering around their lowest level since the 2008 financial crisis. But that doesn’t necessarily mean they are overvalued.

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