Threadneedle (Lux) US$ High Income Bonds Fund
|
|
- Amie Alexander
- 8 years ago
- Views:
Transcription
1 Threadneedle (Lux) US$ High Income Bonds Fund Covering Q Threadneedle (Lux) US$ High Income Bonds Fund (sub-advised by Columbia Management) Brian J Lavin Fund Manager Columbia Management Fund performance High yield bonds continued to post positive returns in March despite the European crisis taking centre stage once again. During the first quarter of the year, the Threadneedle (Lux) US$ High Income Bonds Fund returned 1.94% on a net basis*. High yield underperformed equities but outperformed other fixed income asset classes. The US 10- Year Treasury, the Barclays Aggregate Bond Index and the S&P 500 Index returned %, -0.12% and 10.61% respectively. Lower quality credit outperformed during the quarter. BB, B and CCC rated sectors returned 1.88%, 2.91% and 5.81% respectively. Broadly, high-yield spreads tightened 43 bps in the first quarter to finish at +480 bps. Spread changes by rating category BB, B and CCC were -18 bps, -44 bps and -103 bps respectively. Market review Improved US economic sentiment helped pave the way for a rally in risk assets during the deal on US income taxes to start the year. Looking to other markets, even the failure of Italian elections to form a government and the announcement and ongoing discussions around the unprecedented terms for the Cypriot bailout package had little effect on US risk assets in the quarter. Equities posted impressive gains, while high-yield bond returns were positive but modest compared to equities, as the high-yield asset class continues to be call-constrained and at all-time low yields. High-yield bond net flows were slightly positive for the quarter, but inconsistent and even posted five consecutive weeks of outflows mid-quarter. US economic data improved throughout the quarter, showing signs of improvement in initial unemployment claims and the housing sector. Consumers have thus far been resilient through the expiration of the payroll tax holiday and elevated gas prices appearing to be shrugging off the impacts of sequestration. Additionally, fourthquarter earnings were largely supportive, as S&P 500 Index earnings results came in ahead of expectations, with an average ex-financials earnings growth rate of 4.0% vs. expectations of 0.8% at year end. Companies took advantage of the low-rate environment and accessible markets, resulting in the strongest quarter of new issuance on record, using roughly 85% of the proceeds to refinance higher coupon debt and build cash to shore up balance sheets. Issued: / Valid to: / T13272 Page 1 of 5
2 High-yield fund flows were slightly positive for the quarter, posting a $0.8 billion inflow. New issuance set a quarterly record as 234 new deals were priced totalling $119 billion. There were seven defaults in the quarter totalling $2.3 billion. Investment outlook The primary thesis for the manager s outlook for high-yield remains unchanged. The fund manager remains positive on high yield given the solid fundamentals supporting the asset class. However, expectations for investment returns should be tempered due to current valuations. The manager expects returns in the mid-single-digit range for 2013, incorporating the potential for rising longer term yields and limited price appreciation, given the high percentage of the market already trading above the first call. Corporate fundamentals remain strong. Access to capital has been at record levels, allowing companies to refinance debt. The benefit of refinancing will continue to assist companies for years to come, as they have locked in debt at very low rates and reduced near-term maturities. In addition, the macro uncertainty has kept most management teams conservative and focused on deleveraging. However, leverage has ticked up and the focus is primarily on returning value to shareholders through acquisition-supported growth, dividends and share repurchases. Further deleveraging should not be expected at this point in the credit cycle, but the manager does not believe that a return to significant releveraging is likely either. There are still too many uncertainties remaining and a still uneven economy, which should keep companies more balanced. Of course there are always exceptions, and there is evidence of more aggressive behaviour. Up until now, the quality of high-yield issuance has not deteriorated meaningfully. That being said, conversations with investment bankers suggest that there may be more aggressive terms, pricing and issuance in the year ahead. The bankers are on the leading edge of deals and see aggressive terms offered to companies/sponsors in order to win their business. This is typical competitive dealer behaviour when market risks have declined, but it is the investor who ultimately loses value from pricing and structure. A few examples of weaker terms include investment-grade-like covenants, shorter call periods and weak change of control provisions. The good news is that investors are still being selective, as challenging deals have to be restructured or pulled from the market. The overwhelming demand for the new acquisition finance debt for HJ Heinz highlights the appetite investors have for quality companies with strong sponsor/management reputations. A number of high-yield issuers have been able to tap the equity market through initial public offerings or secondary equity offerings, adding to investor confidence as well as expanding equity multiples in many industries, which has added to equity value support beneath the bonds. Issued: / Valid to: / T13272 Page 2 of 5
3 Earnings growth has been decelerating and is expected to be weak in the first quarter of 2013, but remains positive overall. Consensus 2013 expectations call for S&P 500 Index revenue growth of 3.1% and earnings growth of 6.7%. Earnings growth is back-end loaded, however, quarterly expectations are for -1.9%, 6.2%, 8.4% and 5.1%, respectively for the first quarter through the fourth quarter. Management teams from consumeroriented businesses remain cautious in their outlooks due to soft spending levels despite improvement in demand for larger ticket items such as housing and new car sales. Delayed timing of tax refunds and an unseasonably warm spring have clouded the data, making it difficult to discern what the impact has been from increased payroll taxes. Despite the considerable deleveraging made by corporations and consumers, there is significant work ahead to reduce government deficits. Virtually all the same macro related risks remain, as Italian elections and the Cyprus banking situation served to remind investors, but have been taken in stride due to confidence stemming from central bank activity. The continued overhang of high unemployment, uneven US economic activity and high government deficits are expected to keep growth muted and vulnerable to external shocks. Consensus expectations are calling for a 1.90% gross domestic product growth rate for the US in 2013, which has increased from expectations of 1.80%, as better-thanexpected first quarter economic data has led economists to increase their growth expectations for the year. However, significant uncertainty remains around the impact from sequestration. Economists and companies are likely to wait this out to see what happens before becoming too optimistic. Signs of stability and improvement have been highlighted in China s recent economic numbers and the US labour markets. Housing markets are also showing signs of improvement. With a solid fundamental backdrop to high yield and the potential for the U.S. economy and labour market to show signs of improvement in 2013, this could result in a rise in interest rates, which is likely to mute the returns of the asset class. We believe the sensitivity to rates has the potential to increase in this cycle relative to previous cycles given the low absolute level of interest rates. However, it is important to keep in mind that an improving economy is highly supportive of credit fundamentals and should allow for spreads to compress under this scenario. There has been a lot of activity from Federal Reserve members discussing the cost/benefit of quantitative easing and the potential exit path. It is important to note that the discussion now centres on the timing of the exit and not on adding another dose of quantitative easing. This is a very different place from a year ago, let alone four months ago. This, combined with the improvement in US economic data, has us clearly focused on the potential for a rise in interest rates over the next 12 months. Issued: / Valid to: / T13272 Page 3 of 5
4 Investors continue to look for yield and the high-yield asset class continues to be supported by the solid fundamental backdrop. It remains an attractive investment alternative to other core fixed-income products that may have greater interest-rate volatility and offer lower yields. As a result, retail and institutional demand is expected to continue to be solid in On the margin, there may be some shifts out of the asset class into equities for investors seeking additional risk and return and into leveraged loans as investors look to protect against interest-rate risk. Retail loan demand has outpaced retail high-yield bond funds by 19 to 1, as loans have posted $15.3 billion into funds year to date vs. $0.8 billion in high-yield bond funds. In addition, $27.9 billion of collateralised loan obligations has been launched, adding to loan demand. Supply should continue to meet demand in the marketplace, as we expect additional refinancing and a likely uptick in acquisition, dividend and leveraged buyout financings this year. Dealers remain optimistic about supply created by mergers and acquisitions (M&A). Although North American M&A volumes increased 41% year over year in the first quarter, M&A activity has been slower than expected. However, loan demand and attractive valuations and terms are likely to shift issuance to loans when possible. Loans provide companies with more flexibility with less prepayment penalties than bonds. The manager had been looking for a potential increase in European financings given attractive valuations, but has been guided to expect levels not to increase, as banks have become more comfortable with their lending portfolios. Valuations are less attractive than they were a year ago, but the tail risks are more muted too. Yields of 5.65% yield to worst are at all-time lows given the low absolute level of interest rates. High yield is now pricing in a 3.2% default rate vs. 7.0% at the beginning of last year. The manager s internal expectations for defaults are that default rates will remain below 2% in 2013 and As a result, there is adequate compensation for credit and default risks, but less compensation for broader macro-related risks. In addition, the market overall has less upside potential, with 47% of high-yield bonds trading above the next call price. This leaves less room for price appreciation and causes more reliance on coupon income to generate returns. Given the stable fundamentals of the high-yield asset class with below-average defaultrate expectations, limited refinancing risk, low overall levels of leverage and reasonable earnings outlook, we still view high yield as an attractive investment alternative to other core fixed-income products. Although constructive on credit fundamentals, the fund manager does not believe that this is the time to stretch for return or reach for yield by adding significant risk to the portfolio. Valuations have compressed, and there is limited room for price appreciation. He believes that credit selection will continue to be a key driver of our performance over the coming Issued: / Valid to: / T13272 Page 4 of 5
5 year, and by positioning for improving credit situations, avoiding credits with deteriorating fundamentals and remaining disciplined in terms of getting paid for taking risk, the fund will generate solid risk-adjusted returns. He will continue to maintain a disciplined credit selection based on strong fundamental analysis and rigorous risk management in order to take advantage of opportunities in the marketplace. The views expressed in this report are those of Columbia Management who are the sub-advisor for the Threadneedle (Lux) US$ High Income Bonds. * Source: Morningstar as at fund performance shown for AU share class, net of fees with any income reinvested, performance is calculated in USD. Important Information Singapore The research and analysis included in this document have not been prepared in accordance with the legal requirements designed to promote its independence and have been produced by Threadneedle for its own management activities, may have been acted upon prior to publication and is made available here incidentally. Any opinions expressed are made as at the date of publication but are subject to change without notice. Information obtained from external sources is believed to be reliable but its accuracy or completeness cannot be guaranteed. This document may not be reproduced in any form or passed on to any third party without the express written permission of Threadneedle. This document is the property of Threadneedle and must be returned upon request. A Singapore prospectus ( Prospectus ) can be obtained free of charge from any of our authorized distributors or downloaded from Investors should read the Prospectus for further details before deciding whether to subscribe for or purchase shares. The Fund may invest in financial derivative instruments to the extent permitted under relevant laws. Past performance of the Fund and its Manager and any forecasts or information on the economic trends are not necessarily indicative of the future or likely performance of the Fund or its Manager or a guarantee of future trends. The information provided in this document is for informational purpose only and does not constitute an offer or solicitation of an order to buy or sell any securities or other financial instruments, or to provide investment advice or services. This publication does not have regard to the specific investment objective(s), financial situation or the particular needs of any person. Investors may wish to seek advice from financial adviser before making a commitment to invest. In the event an investor chooses not to seek advice from a financial adviser, the investor should consider whether the Fund is suitable for him. Threadneedle (Lux) is an investment company with variable capital (Société d investissement à capital variable, or SICAV ) formed under the laws of the Grand Duchy of Luxembourg. The SICAV issues, redeems and exchanges shares of different classes, which are listed on the Luxembourg Stock Exchange. Threadneedle Management Luxembourg S.A. is advised by Threadneedle Asset Management Ltd. and/or selected sub-advisors. Threadneedle Management Luxembourg S.A. has appointed State Street Bank and Trust Company Singapore Branch as its Singapore representative. Issued in Singapore by Threadneedle Investments Singapore (Pte.) Limited, 3 Killiney Road, #07-07, Winsland House 1, Singapore Regulated in Singapore by the Monetary Authority of Singapore under the Securities and Futures Act (Chapter 289). License number: CMS This document is not a prospectus as defined in the SFA. Accordingly, statutory liability under the SFA in relation to the content of prospectuses would not apply. Threadneedle Investments is a brand name and both the Threadneedle Investments name and logo are trademarks or registered trademarks of the Threadneedle group of companies. threadneedle.com Issued: / Valid to: / T13272 Page 5 of 5
Opportunities in credit higher quality high-yield bonds
Highlights > > Default rates below the long-term average > > Valuations wide of historical average in BB and B rated credit > > Despite sluggish economy, high yield can still perform well > > High yield
More informationFixed-income opportunity: Short duration high yield
March 2014 Insights from: An income solution for a low or rising interest-rate environment Generating income is a key objective for many investors, and one that is increasingly difficult to achieve in
More informationAn Alternative Way to Diversify an Income Strategy
Senior Secured Loans An Alternative Way to Diversify an Income Strategy Alternative Thinking Series There is no shortage of uncertainty and risk facing today s investor. From high unemployment and depressed
More informationPioneer Bond Fund. Performance Analysis & Commentary September 2015. Fund Ticker Symbols: PIOBX (Class A); PICYX (Class Y) us.pioneerinvestments.
Pioneer Bond Fund COMMENTARY Performance Analysis & Commentary September 2015 Fund Ticker Symbols: PIOBX (Class A); PICYX (Class Y) us.pioneerinvestments.com Third Quarter Review Pioneer Bond Fund s Class
More informationNORTHERN TRUST HIGH YIELD FIXED INCOME QUARTERLY UPDATE. Highlighting attribution, economic and market analysis
NORTHERN TRUST HIGH YIELD FIXED INCOME QUARTERLY UPDATE Highlighting attribution, economic and market analysis December 31, 2015 Northern Trust Asset Management 50 South La Salle Street Chicago, Illinois
More informationA case for high-yield bonds
By: Yoshie Phillips, CFA, Senior Research Analyst MAY 212 A case for high-yield bonds High-yield bonds have historically produced strong returns relative to those of other major asset classes, including
More informationBond Outlook. Third Quarter 2014. Waiting on the Fed. 10-Year Treasury Yields. Treasury Bonds. Break-even Inflation Rate
Third Quarter 21 Waiting on the Fed Despite a strong rebound in domestic economic activity with gross domestic production accelerating toward %, persistent low inflationary pressures and dramatically lower
More informationA case for high-yield bonds
By: Yoshie Phillips, CFA, Senior Research Analyst AUGUST 212 A case for high-yield bonds High-yield bonds have historically produced strong returns relative to those of other major asset classes, including
More informationThe recent volatility of high-yield bonds: Spreads widen though fundamentals stay strong
Investment Insights The recent volatility of high-yield bonds: Spreads widen though fundamentals stay strong Kevin Lorenz, CFA, Managing Director, Lead Portfolio Manager of TIAA-CREF's High-Yield Fund
More informationHigh Yield Credit: An Evaluation for Prospective Insurance Company Investors
High Yield Credit: An Evaluation for Prospective Insurance Company Investors Low interest rates challenging traditional insurance company business model More insurance companies using high yield to mitigate
More informationThe Search for Yield Continues: A Re-introduction to Bank Loans
INSIGHTS The Search for Yield Continues: A Re-introduction to Bank Loans 203.621.1700 2013, Rocaton Investment Advisors, LLC Executive Summary With the Federal Reserve pledging to stick to its zero interest-rate
More informationPioneer AMT-Free Municipal Fund
Pioneer AMT-Free Municipal Fund COMMENTARY Performance Analysis & Commentary September 2015 Fund Ticker Symbols: PBMFX (Class A); PBYMX (Class Y) us.pioneerinvestments.com Third Quarter Review Pioneer
More informationNPH Fixed Income Research Update. Bob Downing, CFA. NPH Senior Investment & Due Diligence Analyst
White Paper: NPH Fixed Income Research Update Authored By: Bob Downing, CFA NPH Senior Investment & Due Diligence Analyst National Planning Holdings, Inc. Due Diligence Department National Planning Holdings,
More informationBOND ALERT. What Investors Should Know. July 2013 WWW.LONGVIEWCPTL.COM 2 MILL ROAD, SUITE 105
BOND ALERT July 2013 What Investors Should Know This special report will help you understand the current environment for bonds and discuss how that environment may change with rising interest rates. We
More informationDEUTSCHE ASSET & WEALTH MANAGEMENT REAL ESTATE OUTLOOK
Research Report DEUTSCHE ASSET & WEALTH MANAGEMENT REAL ESTATE OUTLOOK Second Quarter 2013 Economic Outlook Business and consumer spending to drive recovery Quantitative easing beginning its expected unwinding
More informationThe case for high yield
The case for high yield Jennifer Ponce de Leon, Vice President, Senior Sector Leader Wendy Price, Director, Institutional Product Management We believe high yield is a compelling relative investment opportunity
More informationKDP ASSET MANAGEMENT, INC.
ASSET MANAGEMENT, INC. High Yield Bond and Senior Secured Bank Loan Outlook March 2016 Asset Management, Inc. 24 Elm Street Montpelier, Vermont 802.223.0440 HighYield@kdpam.com The Case for High Yield
More informationHolding the middle ground with convertible securities
January 2015» White paper Holding the middle ground with convertible securities Eric N. Harthun, CFA Portfolio Manager Robert L. Salvin Portfolio Manager Key takeaways Convertible securities are an often-overlooked
More informationSankaty Advisors, LLC
Leveraged Loans: A Primer December 2012 In today s market environment of low rates and slow growth, we believe that leveraged loans offer a unique diversification option for fixed income portfolios due
More informationEconomic & Market Outlook
Monthly Portfolio Commentary December 31, 2015 Economic & Market Outlook Stocks rebounded in 2015 s fourth quarter, but provided little reward for the year as a whole. The S&P 500 Index recovered from
More informationHigh Yield Bonds A Primer
High Yield Bonds A Primer With our extensive history in the Canadian credit market dating back to the Income Trust period, our portfolio managers believe that there is considerable merit in including select
More informationOpportunity in leveraged companies
February 2015» White paper Opportunity in leveraged companies David L. Glancy Portfolio Manager Key takeaways Leverage can create attractive investment opportunities. Leveraged-company securities offer
More informationBond Market Perspectives
LPL FINANCIAL RESEARCH Bond Market Perspectives March 26, 2013 High-Yield Bonds and the Credit Cycle Anthony Valeri, CFA Market Strategist LPL Financial Highlights More speculative issuance has increased
More informationGlobal Financials Update April 13, 2012
Global Financials Update April 13, 2012 Global Market Update After posting a fairly strong and consistent rally over much of the last six months, the global equity markets have changed course over the
More informationNovember 2012. Figure 1: New issuance (US$ billion) presents attractive opportunities
November 2012 Emerging market corporate bonds attractive opportunities in a dynamic sector In a world where traditional fixed income investments, such as core government bonds, offer very low returns to
More informationThe Quarterly Corporate Cash Report
The Quarterly Corporate Cash Report October 2011 Volume 2, Issue 1 Corporate Cash Tops $2 Trillion U.S. corporate cash and shortterm investments increased $88 billion in the second quarter of 2011, reaching
More informationMADISON CORPORATE BOND FUND INVESTMENT STRATEGY LETTER
madisonadv.com madisonfunds.com 2015 2Q EXCELLENCE IN INVESTMENT MANAGEMENT MADISON CORPORATE BOND FUND INVESTMENT STRATEGY LETTER Market Review With Independence Day fast approaching, fireworks began
More informationHigh yield bonds. US senior loans update. begin on page 4.
Chief Investment Office WM 20 March 2014 High yield bonds US senior loans update Barry McAlinden, CFA, strategist, UBS FS barry.mcalinden@ubs.com, +1 212 713 3261 Loan performance can best be characterized
More informationSHARES NOT FDIC INSURED MAY LOSE VALUE NO BANK GUARANTEE. BKLN PowerShares Senior Loan Portfolio
SHARES NOT FDIC INSURED MAY LOSE VALUE NO BANK GUARANTEE PowerShares Senior Loan Portfolio PowerShares Senior Loan Portfolio is the first senior loan exchange-traded fund (ETF) and seeks investment results
More informationLeveraged Loan Funds: Debunking the Myths
Leveraged Loan Funds: Debunking the Myths SM Leveraged Loan Funds: Debunking the Myths Contents 2 Myth #1: Managing liquidity in actively managed leveraged loan mutual funds is difficult. 3 Myth #2: In
More informationHigh-yield bonds. Bonds that potentially reward investors for taking additional risk. High-yield bond basics
High-yield bonds Bonds that potentially reward investors for taking additional risk Types of high-yield bonds Types of high-yield bonds include: Cash-pay bonds. Known as plain vanilla bonds, these bonds
More informationBERYL Credit Pulse on High Yield Corporates
BERYL Credit Pulse on High Yield Corporates This paper will summarize Beryl Consulting 2010 outlook and hedge fund portfolio construction for the high yield corporate sector in light of the events of the
More informationPERSONAL RETIREMENT SAVINGS ACCOUNT INVESTMENT REPORT
PENSIONS INVESTMENTS LIFE INSURANCE PERSONAL RETIREMENT SAVINGS ACCOUNT INVESTMENT REPORT FOR PERSONAL RETIREMENT SAVINGS ACCOUNT () PRODUCTS WITH AN ANNUAL FUND MANAGEMENT CHARGE OF 1% - JULY 201 Thank
More informationGlobal high yield: We believe it s still offering value December 2013
Global high yield: We believe it s still offering value December 2013 02 of 08 Global high yield: we believe it s still offering value Patrick Maldari, CFA Senior Portfolio Manager North American Fixed
More informationProspectus Socially Responsible Funds
Prospectus Socially Responsible Funds Calvert Social Investment Fund (CSIF) Balanced Portfolio Equity Portfolio Enhanced Equity Portfolio Bond Portfolio Money Market Portfolio Calvert Social Index Fund
More informationYukon Wealth Management, Inc.
This summary reflects our views as of 12/15/08. Merrill Lynch High Yield Master Index effective yield at 23%. Asset Class Review: High-Yield Bonds Executive Summary High-yield bonds have had a terrible
More informationFIXED INCOME INVESTORS HAVE OPTIONS TO INCREASE RETURNS, LOWER RISK
1 FIXED INCOME INVESTORS HAVE OPTIONS TO INCREASE RETURNS, LOWER RISK By Michael McMurray, CFA Senior Consultant As all investors are aware, fixed income yields and overall returns generally have been
More informationBALANCED fund. Fourth Quarter Results FOCUSED INVESTING FOR THE LONG-TERM. December 31, 2015
BALANCED fund Fourth Quarter Results December 31, 2015 FOCUSED INVESTING FOR THE LONG-TERM BALANCED fund (MAPOX) Fourth Quarter Market Overview - December 31, 2015 Investors facing growing uncertainty
More informationNORTHERN TRUST ACTIVE FIXED INCOME QUARTERLY UPDATE. Core/Core Plus Investment Strategy
NORTHERN TRUST ACTIVE FIXED INCOME QUARTERLY UPDATE Core/Core Plus Investment Strategy SUMMARY: The Northern Fixed Income Fund (NOFIX)*and Northern Core Bond Fund (NOCBX)** both received four-star overall
More informationWhy Consider Bank Loan Investing?
Why Consider Bank Loan Investing? September 2012 Bank loans continue to increase in popularity among a variety of investors in search of higher yield potential than other types of bonds, with lower relative
More informationANY GAS LEFT IN THE HIGH-YIELD MUNICIPAL TANK?
May 9, 2016 ANY GAS LEFT IN THE HIGH-YIELD MUNICIPAL TANK? A favorable credit environment and technical factors have contributed to strong high-yield municipal performance. We see limited room for further
More informationINCOME IN ALL MARKETS COLUMBIA STRATEGIC INCOME FUND Class A COSIX Class C CLSCX Class R CSNRX Class R4 CMNRX Class R5 CTIVX Class Z LSIZX
INCOME IN ALL MARKETS COLUMBIA STRATEGIC INCOME FUND Class A COSIX Class C CLSCX Class R CSNRX Class R4 CMNRX Class R5 CTIVX Class Z LSIZX NAVIGATING A CHANGING INTEREST RATE ENVIRONMENT Rise to the challenge
More informationPhoenix Management Services Lending Climate in America Survey
Phoenix Management Services Lending Climate in America Survey 4th Quarter 2010 Summary, Trends and Implications PHOENIX LENDING CLIMATE IN AMERICA QUARTERLY SURVEY SUMMARY, TRENDS AND IMPLICATIONS 1. Existing
More informationPROFESSIONAL FIXED-INCOME MANAGEMENT
MARCH 2014 PROFESSIONAL FIXED-INCOME MANAGEMENT A Strategy for Changing Markets EXECUTIVE SUMMARY The bond market has evolved in the past 30 years and become increasingly complex and volatile. Many investors
More informationPRODUCT HIGHLIGHTS SHEET
Prepared on 12 November 2015 This Product Highlights Sheet is an important document. It highlights the key terms and risks of the ILP Sub-Fund and complements the Product Summary. It is important to read
More informationMainStay VP Janus Balanced Portfolio
Summary Prospectus May 1, 2015 MainStay VP Janus Balanced Portfolio To Statutory Prospectus To Statement of Additional Information Before you invest, you may want to review the Portfolio's Prospectus,
More informationEnergizing High Yield Bond Investors: Finding Opportunities Amid Shifting Market Conditions
SM Energizing High Yield Bond Investors: Finding Opportunities Amid Shifting Market Conditions Energizing High Yield Bond Investors: Finding Opportunities Amid Shifting Market Conditions Contents Executive
More informationKDP ASSET MANAGEMENT, INC.
ASSET MANAGEMENT, INC. High Yield Bond and Senior Secured Bank Loan Outlook October 2015 Asset Management, Inc. 24 Elm Street Montpelier, Vermont 802.223.0440 HighYield@kdpam.com This is an analytical
More informationGlobal Markets Update Signature Global Advisors
SIGNATURE GLOBAL ADVISORS MARKETS UPDATE AUGUST 3, 2011 The following comments come from an internal interview with Chief Investment Officer, Eric Bushell. They represent Signature s current market views
More informationDeutsche Floating Rate Fund
Taxable Fixed-Income 2 nd quarter 2014 Deutsche Floating Rate Fund Access a world of opportunities through the global resources of Deutsche Bank Canada United States Netherlands Belgium United Kingdom
More informationFixed Income Asset Allocation
Fixed Income Asset Allocation j a n n e y fixed income strat e g y Our three-pronged approach to 2015 portfolio construction has run its course, with value today found in securitized products and preferreds.
More informationHow To Invest In High Yield Bonds
Investment Perspectives For high-yield bonds, market volatility can bring new opportunities Kevin Lorenz and Jean Lin, portfolio managers for TIAA-CREF High-Yield Fund Article Highlights: The decline in
More informationSpectrum Insights. Time to float. Why invest in corporate bonds? - Value
Spectrum Insights Damien Wood, Principal JUNE 25, 2015 Time to float Investing in floating rate bonds as opposed to fixed rate bonds helps protect bond investors from price slumps. Spectrum expects that
More information2015 Mid-Year Market Review
2015 Mid-Year Market Review Cedar Hill Associates, LLC www.cedhill.com 6111 North River Road, Suite 1100, Rosemont, Illinois 60018 Phone: 312/445-2900 An Affiliate of MB Financial Bank 2015 Major Investment
More informationSchroder International Selection Fund Emerging Markets Debt Absolute Return (the Fund )
Prepared on: 9 October 2015 This Product Highlights Sheet is an important document. It highlights the key terms and risks of this investment product and complements the Singapore Prospectus (the Prospectus
More informationBond Market Insights October 10, 2014
Bond Market Insights October 10, 2014 by John Simms, CFA and Jerry Wiesner, CFA General Bond Market Treasury yields rose in September as prices fell. Yields in the belly of the curve (5- to 7-year maturities)
More informationHigh yield bonds. US senior loans update. required disclosures begin on page 4.
CIO WM Research 11 August 20 High yield bonds US senior loans update Barry McAlinden, CFA, strategist, UBS FS barry.mcalinden@ubs.com, +1 212 713 3261 Philipp Schöttler, strategist, UBS AG US loans experienced
More informationMawer Canadian Bond Fund. Interim Management Report of Fund Performance
Interim Management Report of Fund Performance For the Period Ended June 30, 2015 This interim management report of fund performance contains financial highlights but does not contain either interim or
More informationFocus on: Pioneer Funds - Global Equity Target Income
Focus on: Pioneer Funds - Global Equity Target Income Global Equity Portfolio with an Enhanced Income Approach EQUITTIES FOCUS Pioneer Funds Global Equity Target Income Enhanced Income: Investment in a
More informationSACRS Fall Conference 2013
SACRS Fall Conference 2013 Bank Loans November 14, 2013 Allan Martin, Partner What Are Floating Rate Bank Loans? Senior secured floating rate debt: Current Typical Terms: Spread: LIBOR + 5.00%-6.00% LIBOR
More informationThe Credit Analysis Process: From In-Depth Company Research to Selecting the Right Instrument
Featured Solution May 2015 Your Global Investment Authority The Credit Analysis Process: From In-Depth Company Research to Selecting the Right Instrument In today s low yield environment, an active investment
More informationSTEWARD FUNDS MANAGING WEALTH, PROTECTING VALUES SOCIALLY RESPONSIBLE SCREENED FUNDS. PROSPECTUS August 28, 2015
STEWARD FUNDS MANAGING WEALTH, PROTECTING VALUES SOCIALLY RESPONSIBLE SCREENED FUNDS Steward Large Cap Enhanced Index Fund Individual Class SEEKX Institutional Class SEECX Steward Small-Mid Cap Enhanced
More informationThe Case for a Custom Fixed Income Benchmark. ssga.com/definedcontribution REFINING THE AGG
The Case for a Custom Fixed Income Benchmark ssga.com/definedcontribution REFINING THE AGG For decades, the Barclays US Aggregate Index (the Agg ) has been a popular benchmark for core bond investment
More informationPriority Senior Secured Income Fund, Inc.
Priority Senior Secured Income Fund, Inc. This material is neither an offer to sell nor the solicitation of an offer to buy any security. Such an offer can be made only by prospectus, which has been filed
More informationBetter domestic economy but lower rates
ZACH PANDL, PORTFOLIO MANAGER AND STRATEGIST 215 PERSPECTIVES INTEREST RATES: FAREWELL, LIQUIDITY TRAP With continued growth and further improvement in labor markets, the Federal Reserve (the Fed) looks
More informationEnergizing High Yield Bond Investors: Finding Opportunities Amid Shifting Market Conditions
Energizing High Yield Bond Investors: Finding Opportunities Amid Shifting Market Conditions Energizing High Yield Bond Investors: Finding Opportunities Amid Shifting Market Conditions Contents Executive
More informationRevenues before loan loss provisions almost stable at EUR 2.3 bn despite seasonal effects
Press release For business desks 7 November 2013 Commerzbank: operating profit of EUR 103 m in third quarter Revenues before loan loss provisions almost stable at EUR 2.3 bn despite seasonal effects Annual
More informationThe Argument for Corporate Debt December 2008
The Argument for Corporate Debt December 2008 This past quarter the US economy has experienced what appears to be the crescendo of a credit crisis that has been building for well over a year. The causes
More informationTaxable Fixed Income. Invesco Floating Rate Fund (AFRAX)
Taxable Fixed Income Invesco Floating Rate Fund (AFRAX) Senior Secured Loans A unique asset class Floating rate funds, also called senior loan funds, invest in senior secured loans. The loans have very
More informationImportant Information about Closed-End Funds and Unit Investment Trusts
Robert W. Baird & Co. Incorporated Important Information about Closed-End Funds and Unit Investment Trusts Baird has prepared this document to help you understand the characteristics and risks associated
More informationBond Fund Investing in a Rising Rate Environment
MUTUAL FUND RESEARCH Danette Szakaly Ext. 71937 Date Issued: 1/14/11 Fund Investing in a Rising Rate Environment The recent rise in U.S. Treasury bond yields has some investors wondering how to manage
More informationWith interest rates at historically low levels, and the U.S. economy showing continued strength,
Managing Interest Rate Risk in Your Bond Holdings THE RIGHT STRATEGY MAY HELP FIXED INCOME PORTFOLIOS DURING PERIODS OF RISING INTEREST RATES. With interest rates at historically low levels, and the U.S.
More informationWhy high-yield municipal bonds may be attractive in today s market environment
Spread Why high-yield municipal bonds may be attractive in today s market environment February 2014 High-yield municipal bonds may be attractive given their: Historically wide spreads Attractive prices
More informationTRANSAMERICA SERIES TRUST Transamerica Vanguard ETF Portfolio Conservative VP. Supplement to the Currently Effective Prospectus and Summary Prospectus
TRANSAMERICA SERIES TRUST Transamerica Vanguard ETF Portfolio Conservative VP Supplement to the Currently Effective Prospectus and Summary Prospectus * * * The following replaces in their entirety the
More informationIntel Reports Fourth-Quarter and Annual Results
Intel Corporation 2200 Mission College Blvd. P.O. Box 58119 Santa Clara, CA 95052-8119 CONTACTS: Reuben Gallegos Amy Kircos Investor Relations Media Relations 408-765-5374 480-552-8803 reuben.m.gallegos@intel.com
More informationFLOATING RATE BANK LOANS: A BREAK FROM TRADITION FOR INCOME-SEEKING INVESTORS
FLOATING RATE BANK LOANS: A BREAK FROM TRADITION FOR INCOME-SEEKING INVESTORS With about $713 billion in assets, the bank loan market is roughly half the size of the high yield market. However, demand
More informationCity National Rochdale Intermediate Fixed Income Fund a series of City National Rochdale Funds
City National Rochdale Intermediate Fixed Income Fund a series of City National Rochdale Funds SUMMARY PROSPECTUS DATED JANUARY 31, 2015, AS SUPPLEMENTED MAY 1, 2015 Class: Class N Institutional Class
More informationDFA INVESTMENT DIMENSIONS GROUP INC.
PROSPECTUS February 28, 2015 Please carefully read the important information it contains before investing. DFA INVESTMENT DIMENSIONS GROUP INC. DFA ONE-YEAR FIXED INCOME PORTFOLIO Ticker: DFIHX DFA TWO-YEAR
More informationEuropean high yield in 2015: a tale of two markets An M&G Investments Institutional briefing December 2015
European high yield in 215: a tale of two markets An M&G Investments Institutional briefing December 215 Weakness in US high yield in the last months of 215 has highlighted the relative strength of the
More informationFixed Income Liquidity in a Rising Rate Environment
Fixed Income Liquidity in a Rising Rate Environment 2 Executive Summary Ò Fixed income market liquidity has declined, causing greater concern about prospective liquidity in a potential broad market sell-off
More informationSAP Debt Investor Presentation First Quarter 2014 Update Call Walldorf, Germany April 28, 2014
SAP Debt Investor Presentation First Quarter 2014 Update Call Walldorf, Germany April 28, 2014 Safe Harbor Statement Any statements contained in this document that are not historical facts are forward-looking
More informationTHE POTENTIAL MACROECONOMIC EFFECT OF DEBT CEILING BRINKMANSHIP
OCTOBER 2013 THE POTENTIAL MACROECONOMIC EFFECT OF DEBT CEILING BRINKMANSHIP Introduction The United States has never defaulted on its obligations, and the U. S. dollar and Treasury securities are at the
More informationQuestions and Answers About Senior Secured Loans
Revised August 2013 Senior Secured Loans Questions and Answers About Senior Secured Loans Joe Lemanowicz Managing Director and Head of U.S. Senior Secured Loan Team Pramerica Fixed Income U.S. senior secured
More informationFLOATING RATE BANK LOANS: A BREAK FROM TRADITION FOR INCOME-SEEKING INVESTORS. Why does the bank loan sector remain so attractive?
FLOATING RATE BANK LOANS: A BREAK FROM TRADITION FOR INCOME-SEEKING INVESTORS Bank loans present a compelling income opportunity and a portfolio diversifier that provides protection against traditional
More informationFixed Income Market Comments
Strategy Fixed Income Weekly Fixed Income Market Comments Yields moved higher last week as the final reading of second quarter economic growth (GDP) was higher than expected at 3.9% (forecast at 3.7%)
More informationHSBC Mutual Funds. Simplified Prospectus June 15, 2016
HSBC Mutual Funds Simplified Prospectus June 15, 2016 Offering Investor Series, Advisor Series, Premium Series, Manager Series and Institutional Series units of the following Funds: Cash and Money Market
More informationRisks and Rewards in High Yield Bonds
Risks and Rewards in High Yield Bonds Peter R. Duffy, CFA, Partner, Senior Portfolio Manager Navy Yard Corporate Center, Three Crescent Drive, Suite 400, Philadelphia, PA 19112 www.penncapital.com 1 What
More informationFixed Income Strategy Quarterly April 2015
Doucet Asset Management Fixed Income Strategy Quarterly April 2015 The first quarter of 2015 was a fairly uneventful one. Across the world, the pullback in yields we witnessed in 2014 continued; however,
More informationInvestor Guide to Bonds
Investor Guide Investor Guide to Bonds threadneedle.com Introduction Why invest in bonds? Although your capital is normally considered safe in a traditional deposit account, low interest rates have eroded
More informationA strategic, multisector approach to fixed-income investing
Alternative Solutions Forward Credit Analysis Long/Short Fund A strategic, multisector approach to fixed-income investing Is it time to adapt your fixed-income approach? Today s fixed-income investors
More informationDocumeent title on one or two. high-yield bonds. Executive summary. W Price (per $100 par) W. The diversification merits of high-yield bonds
April 01 TIAA-CREF Asset Management Documeent title on one or two The lines enduring Gustan case Book for pt high-yield bonds TIAA-CREF High-Yield Strategy Kevin Lorenz, CFA Managing Director Co-portfolio
More informationGlobal bond investing
Global bond investing Todd Schlanger, CFA Investment Strategy Group Vanguard Asset Management, Limited This document is directed at professional investors and should not be distributed to, or relied upon
More informationThe Rise and Rise of Interest Rate Securities
The Rise and Rise of Interest Rate Securities Nicholas Yaxley, Credit Research, Morningstar Australasia Agenda Outline the key drivers of primary issuance and whether they are still relevant How does
More informationFixed Income Update Portfolio Positioning
Fixed Income Update Portfolio Positioning April 2015 In 2014, we saw traditional relationships between equity and high yield performance diverge. Despite an improving U.S. economy Treasuries rallied along
More informationUnconstrained fixed income may offer a compelling solution for today s bond market challenges
INVESTMENT OPPORTUNITIES The market direction and your portfolio Unconstrained fixed income may offer a compelling solution for today s bond market challenges Why now? n Elevated risks and prolonged dismal
More informationBond Fund of the TIAA-CREF Life Funds
Summary Prospectus MAY 1, 2015 Bond Fund of the TIAA-CREF Life Funds Ticker: TLBDX Before you invest, you may want to review the Fund s prospectus, which contains more information about the Fund and its
More informationChapter 7. . 1. component of the convertible can be estimated as 1100-796.15 = 303.85.
Chapter 7 7-1 Income bonds do share some characteristics with preferred stock. The primary difference is that interest paid on income bonds is tax deductible while preferred dividends are not. Income bondholders
More informationCALVERT UNCONSTRAINED BOND FUND A More Expansive Approach to Fixed-Income Investing
CALVERT UNCONSTRAINED BOND FUND A More Expansive Approach to Fixed-Income Investing A Challenging Environment for Investors MOVING BEYOND TRADITIONAL FIXED-INCOME INVESTING ALONE For many advisors and
More informationYOUR FINANCIAL FUTURE
YOUR FINANCIAL FUTURE January 2013 In This Issue Outlook 2013 The Path of Least Resistance In 2013, many different forces will combine to influence the direction of the markets to follow the path of least
More information