Goodson: Fixed Income Investors Should Consider Securitized Credit Options

July 22, 2019

Voya Investment Management Head of Securitized Credit Dave Goodson recently spoke with Pensions & Investments about how securitized credit can help investors enhance their fixed-income portfolio, as “an evolving macro environment coupled with positive market fundamentals make securitized credit investments an attractive option.” 

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Interest Rate Cuts May Disappoint After Strong Jobs Data Release

July 5, 2019

Voya Investment Management Asset Allocation Strategist Timothy Kearney was on CNBC offering insights to June payroll numbers, which could impact the Federal Reserve interest rate decision later this month. Kearney said he was not anticipating a 50 basis point cut, as “the market was well ahead of itself.” 

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Retirees Considering Increasing Risk Profile

July 2, 2019

Voya Investment Management Head of Asset Allocation Barbara Reinhard spoke with U.S. News & World Report about retirees increasing the amount of risk in their portfolio, as they seek to “maintain purchasing power for 30-plus years while not taking so much risk” that they leave themselves exposed. According to Reinhard, “The riskiest day in your entire financial life is the day you retire. The day you retire you need to have the single longest longevity on your assets to be able to sustain you.”

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Investors Turn To Junk Bonds In Search For Yield

July 1, 2019

CNN reports that investors have begun to look beyond long-term government bonds for yield as speculation grows that the Federal Reserve will reduce interest rates later this month. Voya Financial Chief Investment Officer of Fixed Income Matt Toms believes investors looking for good opportunities should consider some high yield or junk bonds, especially those with B or BB ratings which have outperformed their peers in recent weeks. “These bonds satisfy both a need for yield as well as mitigate any investor apprehension about increasing credit risk,” Toms said.

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Voya’s Tim Kearney Discusses Market Drivers

June 27, 2019

Tim Kearney, Multi-Asset Market Strategist at Voya Investment Management, told Bloomberg Markets: Americas that trade and the Fed are driving his outlook right now. With regard to asset classes, he said: “We think that there’s going to be continuation of the trade discussions, and that will keep equity markets and risk assets with a little bit of a lift following into the Fed a month later.” 

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Voya’s Travis King Discusses AbbVie’s Bid For Allergan

June 25, 2019

Bloomberg reports “AbbVie Inc.’s $63 billion deal for Allergan Plc will take the company’s debt burden to a level that can rival some junk-rated companies.” Voya Investment Management’s Head of Investment-Grade Credit Travis King said, “Debt is cheap so it makes sense from their perspective, and rating agencies are giving them the OK to do that.”

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Voya’s Travis King Comments As Credit Buyers Double Down On BBB Bonds, High-Quality Junk

June 21, 2019

Bloomberg reported “as the Federal Reserve moves closer to expanding the money supply, corporate bond investors are snatching up notes and taking more risk – but not too much more.” Bloomberg said “prices on the lowest-rated investment-grade bonds are jumping, as are the highest-rated junk bonds. While high-yield investors are still favoring relatively safer securities, those that invest in high-grade are reaching for yield in the riskiest part of that market.” Travis King, head of Investment-Grade Credit at Voya Investment Management, said: “It’s been all buyers. Investors are going down the quality spectrum. That means the lower BBBs, the crossovers – stuff that trades wide.” King also “says he thinks the rally could continue, especially as more buyers from outside the U.S. step in.”

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Asset Managers Beginning To De-Risk As Recession Forecasts Grow

June 1, 2019

Voya Investment Management Managing Director and Head of Insurance Solutions John Simone was quoted throughout an A.M. Best article looking at how large asset managers and insurers are planning for a riskier future as the warning signs of an impending recession mount. As markets turn, Simone said, “The greatest risk to the industry is a ratings migration downward, creating the need for more risk-based capital backing investments.” Looking forward, Simone sees private assets as providing better returns than publics, saying, “We favor private assets over public because not only are we getting better yield, but we get better structure. And better structure is really important with where we are in the credit cycle. We like private placements, investment-grade quality private commercial mortgage loans extending into below-investment-grade commercial mortgage loans and lower quality private debt, where we see opportunity. We really want to be able to pounce there when the market turns.”

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Institutional Investors Look To Alternative Investments To Boost Returns

May 27, 2019

Pensions & Investments reports institutional asset owners such as insurance companies “continue to seek new sources of alpha in alternative investments.” As yields on core fixed income assets have fallen in recent years as interest rates decline, insurers have turned to real estate, hedge funds, and other alternative classes, though those teams are often outside the company’s traditional core of expertise. Voya Investment Management Head of Insurance Solutions John Simone said money managers are increasingly building teams to concentrate on the insurance market, saying, “The successful ones will build out a comprehensive solutions team focused on delivering in addition to alpha solutions globally (such as) insurance asset management advisory capabilities, specialized analytics/optimizations, dedicated relationship management and specialized reporting.” However, Simone cautioned that managers must realize the same solutions they are used to in the retirement plan sector will likely not apply to insurers, saying, “the barriers to entry are often higher than many think.”

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