Oil:US high yield correlation breaks down
The correlation between oil and US high yield markets broke down in July, indicative of a shift in the focus of the sector.
The correlation between oil and US high yield markets broke down in July, indicative of a shift in the focus of the sector.
Asset managers believe that the country’s bond defaults are a concern, but stopped short of saying they would spread outside the energy-related sectors.
With the promise of a unique approach to investing in fixed income, Fraser Lundie outlines Hermes’ ambitions to be a global player in more ways than one
Money has poured into high yield bond funds at a rare pace over the past month but is this a sound move based on merit, or a case of return-starved investors clutching at straws?
This week’s head-to-head challenge featuring Victoria Hasler, head of research at Square Mile Investment Consulting and Research and Sarasin & Partners fund of funds manager Lucy Walker shines the spotlight on two high yield funds: Kames High Yield Bond and Baillie Gifford High Yield Bond.
Those who believe that ‘risk-on, risk-off’ is consigned to the past look away now, with record inflows into US high-yield indicating that sentiment has shifted once again to the spicier end of the fixed income spectrum.
Credit markets have already rung the bell for the top of the cycle in a year that was always going to be challenging, said Peter Toogood of the Adviser Centre.
Kames Capital high-yield bond guru Phil Milburn’s leave of absence has been extended until the second half of this year following his continued struggles with post-viral fatigue syndrome.
United States bonds have seen the worst monthly outflows from the asset class since 2013, according to Societe Generale.
I’ve lost count of the number investors who described themselves as “cautiously optimistic” in 2015, but going into 2016 maybe we should drop the caution entirely (or at least tone it down a bit).
JP Morgan Asset Management’s Bill Eigen has reiterated his high conviction in the unloved high yield market.
“It’s all about emptying your mind,” she said. “Take a deep breath and let your stresses go.”