It's hard to believe the United States will avoid a downturn this year, and we don't see any catalysts for economic growth outside the U.S. We expect U.S. yields to fall further and the yield curve to flatten.
The vote is done, and Britain will leave the European Union. As the disruptions and unwinding begin, Voya Investment Management offers its views – from the perspectives of its four investing platforms – on how the aftermath of the Brexit vote is likely to shape financial markets going forward.
Gearing Up for Summer - The short post-Memorial Day week experienced tightened pricing for a series of successful new issue transactions due to high demand stemming from strong technicals and a continued light forward calendar.
Riding the Technicals - Looking to take advantage of robust technicals, investors sought out a series of large cap primary deals ahead of an expected slowing of the forward pipeline in what was a good week for the asset class. The index gained a solid 0.35%, while average bids increased by 22 bps, to 93.34.
In Search of Par - The movement toward par for a good portion of the loan market continued last week, while distressed credits also enjoyed improving market valuation. The Index was up 0.22% with average bids increasing by 14 bps to 93.01.
Slim Pickings - A shallow forward calendar sent investors flocking to the new issue market last week creating strong demand with five deals enjoying tighter pricing and more advantageous terms. The index posted a nice increase on the week, 0.68%, as average bids jumped 50 bps to 92.60.
The general rule of thumb when considering the relative value of a bond is that “wide” equals “cheap”. While this approach is relatively useful in a static mid-cycle environment, it breaks down in a changing world.