Markets, economy, stocks, growth, global, fixed income, international, asset classes
We raised the probability of Recession to 55% after virus-induced shocks, oil prices’ collapse and violent market volatility. We are de-risking, adding very high quality duration, while expecting credit markets to cheapen and reserve currencies to do well
In this paper, we assess the potential risks associated with such a strategy by stressing capital requirements using spread-implied ratings.
Reaching for yield, which we define as buying bonds with wider spreads after controlling for sector and rating impacts, is a topic that frequently arises in the life insurance industry.
What investors should consider
What are the implications of quantitative tightening for the global bond market?
What are the bright spots in fixed income?
Do high yield bonds and leveraged loans still have room to run?