Bloomberg: Bankers Tout ESG Bond Bonanza Amid Credit Market Mayhem

Bloomberg article highlights increased interest in ESG bonds amid credit market downturn. The market for socially responsible credit stays open while the broader primary market sinks as a result of heightening recession risks. Although volumes have decreased, issuance of ESG products are increasing, making up 9.44% of the more than $1 trillion volume of corporate…

Read More

Volatility in Bonds Deepens After Inflation Report

Fresh evidence of accelerating inflation rattled bond markets anew on Wednesday, sparking large swings in Treasury yields as traders shifted their bets on how the Federal Reserve and the economy might respond. Treasury yields, which rise when bond prices fall, jumped immediately after the government released new consumer-price index data, which showed broad-based inflation reaching another four-decade high….

Read More

Reuters: Treasury Market Faces Liquidity Risks as Fed Pares Balance Sheet

Recent Reuters article highlights the concern of treasury markets facing liquidity risks as the Fed runs down its balance sheet. While the Federal Reserve is starting to let bonds mature off its $9 trillion balance sheet, volatility is expected to pick up as the market already suffers from low liquidity. Jonathan Cohn, Head of Rates Trading Strategy, Credit Suisse said…

Read More

Bloomberg: Wall Street Faces Billion-Dollar Losses on Sinking Buyout Debt

Recent Bloomberg article highlights US and European banks’ losses on sinking buyout debt. With the Federal Reserve rushing to hike rates, credit risk premiums are surging beyond levels seen before. Nichole Hammond, Senior Portfolio Manager, Angel Oak Capital Advisors comments regarding this issue “Banks agreed to finance deals months ago and we’ve had a massive…

Read More

Business Wire: BlackRock Projects Global Bond ETF Assets to Reach $5 Trillion by 2030

Although fixed income markets have been underperforming, BlackRock projects global bond ETF assets under management to reach $5 trillion by 2030. As bond ETFs have been gaining traction during times of near-zero interest rates, the pandemic and inflationary pressures, Salim Ramji, Global Head of ETF and Index Investments, BlackRock credits these catalysts to a “more…

Read More

BND: The Bond Market Collapse Is Accelerating

Thus far, 2022 has accelerated many of 2021’s most significant trends. Inflationary forces have risen even higher, while bonds have cratered under higher rates. As of two weeks ago, the global bond index declined $2.6T, and corporate bonds have lost a staggering $1T in value. The “safe” primarily U.S. Treasury bond ETF (NASDAQ:BND) has declined by 7.3%, while…

Read More