Author: admin

26 Jun 2015 Fixed Income Perspectives – “See You in September”

While the Fed continues to play coy with its plans for a rate hike, September certainly remains a compelling liftoff date. Were the Fed to act at the end of the summer, though, the primary driver would most likely be financial market stability rather than runaway inflation or a slack-free economy.

27 May 2015 Fixed Income Perspectives

Adding "bund blowup" to a list that already includes "temper tantrum" and "franc fiasco", it appears that we're mired in a period during which central bank activity is more likely to increase volatility than dampen it, as sharp changes in policy expectations whipsaw markets.

29 Apr 2015 Fixed Income Perspectives

As spring tries to finally loosen us from an insistent Old Man Winter's icy grasp, we're witnessing another tug of war between the world's major economies and its central banks. Despite ample signs of slowing economic growth in the U.S., Fed members and watchers alike have continued to talk up the need for near-term normalisation of interest rates. A mirror image is visible in Europe, where a nascent upswing in economic activity is being accompanied by a European Central Bank steadfast in its commitment to asset purchases through September 2016 to help the green shoots take hold across the region.

27 Apr 2015 White Paper – Commercial Mortgage Loans

This paper explores the features, advantages and benefits of investing in commercial mortgage "whole" loans - debt instruments secured by income producing commercial buildings such as offices, apartments, industrial properties and shopping centres. A pillar of insurance company portfolios for many years, the asset class is less well understood outside the insurance industry. Historical simulations, however, show the potential of commercial mortgage loans to expand the attainable efficient frontier for institutional investors.

30 Mar 2015 Fixed Income Perspectives

Punxsutawney Phil won’t be adding “economic soothsayer” to his resume this year. The prescient marmot saw his shadow on Groundhog Day, which typically prognosticates six more weeks of winter. But if the latest U.S. Federal Reserve announcement was any barometer of the economic climate, it would be superstitious to believe in a spring of interest rates anytime soon.

22 Mar 2015 White Paper – ‘Specialty Fixed Income – Yield Enhancers for a Rising-Rate Environment’

After more than 20 years of persistently declining interest rates, the fixed income investment environment has grown more challenging of late - perhaps as challenging as it has ever been - as the low yields that have dominated the marketplace in recent memory are being supplanted by fears that rates are beginning to move higher. There are, however, a number of reasons to believe that interest rates, though likely to rise, will remain below their long-term historical average for some time. Moreover, a number of “specialty” income-oriented strategies not only deliver attractive yields in low-rate conditions but can also perform well in a rising-rate environment. After a brief assessment of the fixed income investment landscape, in this paper we describe five such strategies.

13 Mar 2015 White Paper – Introduction to Private Credit

Large institutional investors allocate a significant amount of their total assets to fixed income, which is intended to provide consistent income and lower volatility than equity. Insurance companies, pension funds and certain other long-term investors seek specific fixed income assets that provide both long duration and potentially lower losses than other investment choices. Many of these investors now realise that the fixed income asset class that can provide the duration they need along with potentially higher returns and lower losses is private credit, also know as "private placements". The purpose of this paper is to introduce the asset class and explain its nature, characteristics and distinctions and explore some of the advantages and risks of investing in private credit.