For all the volatility and uncertainty in the economy and financial markets, high yield bonds have continued to attract investors over the last two months. Here are some of the metrics that are being factored into the assessment of potential relative value opportunities in this asset class.
The phrase “unprecedented times” can seem overused these days, but it seems appropriate to describe the current state of financial markets. In this time of uncertainty, the investment team at Ceredex Value Advisors comments on the current investment environment and its impact on their portfolios.
Newfleet Asset Management provides their most recent insights on the current market environment.
Frank Ossino, Senior Portfolio Manager and Bank Loan Sector Head, discusses the impact of the coronavirus on the bank loan market and how portfolios are being positioned.
The Vontobel Quality Growth Investment Team assesses the impact of the current crisis on India and offers an outlook on the Indian businesses owned in their portfolios.
According to Gregg Thomas, Director of Investment Strategy at Wellington Management, the market has been engaging most on companies that might not pass the "going concern" test in the face of the first real growth shock we’ve seen since the GFC, and that these companies are seeing a massive increase to their discount rates. Wellington’s definition of solvency looks at the relative distance to a default (similar to the model used by credit-rating agencies).
Why institutional investors from around the world have chosen Seix for structured credit vehicles. With collateralized loan obligations (CLO) increasingly popular among banks and insurers around the world, Seix has managed 15 CLOs and recently closed on its ninth since the financial crisis. Like its other CLOs, this new offering focused on credits with: solid asset protection; improving cash flow used to grow the business and/or de-leverage the balance sheet; seasoned capable management.
Active management and credit selection have never been more important, says Newfleet President and CIO David Albrycht.
We know that the outbreak of the coronavirus (COVID-19) is going to disrupt supply chains, reduce demand as well as slow economic activity and growth. All of these factors will have an impact on inflation.
As coronavirus fears rattle global markets, SGA remains focused on identifying sustainable growth businesses that can weather the storm and generate attractive revenue and earnings growth on a long-term basis.
Kayne Anderson Rudnick weighs in on the coronavirus situation, including a look back at the 2002-2003 SARS epidemic for insight on the longer-term economic impact.
Vontobel Asset Management, subadviser to the Virtus Vontobel Funds, has issued a statement in response to the impact of the coronavirus on global markets.
“The active managers that are going to be successful on a long-term basis…can truly stand out in a crowd.”
Newfleet CIO discusses why you want to have risk in your portfolio and how Newfleet balances that risk within their multi-sector strategies.
The high yield market continues to offer a compelling opportunity to investors.
Newfleet President and CIO David Albrycht discusses relative value opportunities in the bond market and why active management is so important.
The Virtus KAR Small-Cap Growth Fund is the subject of a Reuters feature highlighting the Fund’s strong performance over the last decade relative to all other stock mutual funds. Though currently closed to new investors, the fund remains open to defined contribution and defined benefit plans. Read the article for insights from the portfolio managers, Todd Beiley and Jon Christensen, who manage several small- and mid-cap portfolios at Kayne Anderson Rudnick.
Frank Ossino, senior portfolio manager and sector head of the bank loan asset class at Newfleet, discusses prospects for bank loans heading into 2020.
Amid growing uncertainty, investors have shown greater interest in bond funds but must contend with a variety of risks as central banks around the world continue to implement unprecedented negative rate policies and the Federal Reserve remains accommodative. Here’s a guide to why active management matters.
Ten years may sound like “long term” investing, unless you’re talking about the 10 years ended September 30, 2019. Without the bear market of 2008-09 in your time frame, the view becomes incredibly rosy. A 20-year lookback provides much-needed perspective.
Explore the key attributes of mid-cap investing and the opportunities offered to investors, and use our interactive tool to see how an allocation to mid-caps may improve an equity portfolio’s performance and mitigate risk over time.
A structurally flawed benchmark index has proven a fertile ground for active managers.
After the FOMC cut rates, Fed Chair Powell said nope to NIRP (negative interest rate policy). But a return to ZIRP (zero interest rate policy) and more QE/forward guidance seem inevitable.
Newfleet Asset Management’s current view regarding the discontinuation of LIBOR, which is scheduled to happen at the end of 2021, and its potential impact on the loan market.
The ten-year U.S. Treasury note yield recently fell below that of the two-year note for the first time since 2007. Should the yield curve stay inverted for an extended period, it is clearly a negative development for economic growth. Kayne Anderson Rudnick (KAR) believes the yield curve tends to be a more accurate forecasting tool than many economists or Wall Street strategists, and should prompt the Fed to extend rate cuts.
“It’s dividends, valuation, and fundamentals.” Don Wordell, portfolio manager at Virtus affiliate Ceredex Value Advisors, discusses the investment process behind the Virtus Ceredex Mid-Cap Value Equity Fund, which he has managed since 2001.
Newfleet Asset Management provides perspective on why the loan market should be viewed as an income asset class, not solely an interest rate hedging tool.
Seix Investment Advisors discusses China’s ability to deliver solid economic growth in the coming months in order to prevent a further global slowdown in 2019 and beyond.
With inflation a growing concern, retirement investors may wish to consider an allocation to non-traditional inflation hedges like high yield bonds and leveraged loans which offer little to lower duration risk, respectively, and a low correlation to investment grade bonds, as well as other benefits.
Featured in Wealth Management’s 2018 Midyear Outlook edition, Frank Ossino discusses Newfleet’s outlook and investment thesis for bank loans at the midyear point.
In April and May 2018, members of Duff & Phelps’ Global Listed Infrastructure team traveled to Australia, New Zealand and Europe for investment research trips. Senior portfolio manager Connie Luecke, CFA, shares insights gleaned from site visits and meetings with management.
The Duff & Phelps Global Real Estate Investment Team comment on the positive pickup in deal activity in the industrial REIT space over the past month.