Investors are buying up debt of everything from Brazilian airlines to Indian ports, hastened by a hunt for yield and default levels among emerging market companies below that of U.S. peers. Source: The Guardian In a sign of the sector’s growing appeal, year-to-date flows into emerging bonds have turned positive for the first time in…
Divergence between European and U.S. monetary policy is boosting the attractiveness of euro corporate credit amid continued coronavirus upheavals, according to BNP Paribas SA. Source: Bloomberg “There is less downside in European credit because it has much more robust support,” Viktor Hjort, the bank’s global head of credit strategy, said in an interview. “The ECB…
Russell Investments’ latest survey of fixed income managers found 50% expect the global economy to revert to pre-pandemic levels by year-end 2021, while 48% don’t expect it to revert before 2022. The 64 bond and currency managers who responded to the firm’s Q4 survey also indicate more appetite for riskier assets. The percentage selecting investment-grade…
Last week’s public spat between Treasury Secretary Steven Mnuchin and Federal Reserve Chair Jerome Powell may have set an end date for the central bank’s unprecedented intervention in U.S. credit markets. But make no mistake, the legacy of this episode will most likely permanently change investors’ mindset during periods of crisis. Source: BNN Bloomberg In particular, the Fed’s swift…
Greater Toronto Airports Authority is monitoring bond market conditions as its most recent debt deal outperforms the wider Canadian dollar corporate bond market. GTAA’s C$500 million ($382 million) of secured bonds due 2028 were quoted Friday at a spread of around 88 basis points over similar-duration government securities, or around 21 basis points tighter than where they were…
Deutsche Bank AG has seen a surge in trading across Wall Street since the U.S. election and news of a possible coronavirus vaccine, sustaining a rally that boosted third-quarter revenue across top investment banks. “The past couple of days since Pfizer’s groundbreaking announcement and what we all hope will be an inflection point in this pandemic, the street has…
Traditionally issued by high-growth companies, these securities have drawn tourism and travel companies who need to raise cash Source: WSJ Companies hit hard by the coronavirus pandemic flooded the market this year with the most convertible bonds since 2007. Investors who scooped up these securities have been rewarded with strong returns. Travel and hospitality companies including…
The risk-of-default ratios for consumer industries have decreased from higher peaks earlier this year, but they are still trending above the levels they enjoyed before the coronavirus pandemic. Source: S&P Global Drug retailers, department stores, and the travel and leisure industries — considered the most vulnerable sectors by S&P Global Market Intelligence’s median one-year market…
Credit and Rates Trading Workflow Automation Vest Execution Pricing and Liquidity Risk Analytics Overview and Current Process Buy-side asset managers are rapidly embracing artificial intelligence applications to price fixed income securities algorithmically in live trading execution environment or for purposes of end of day reconciliation and portfolio construction. The current fixed income capital market data…
Buy-side firms are falling behind the sell-side in the bid to scale up adoption of artificial intelligence (AI) and machine learning (ML) technologies, according to an in-depth report from Refinitiv. Source: The TRADE Refinitiv polled 120 asset managers and found 28% had deployed ML and AI in multiple areas, describing it as core to their…
