Opportunities at the longer end of the commercial paper curve?
Short Term Investments Committee
Short duration credit: ride the wave
Fast reading Bond yields have risen to such a level that the carry an investor receives in short duration debt should provide more than adequate compensation for any changes in bond prices. A global approach, trading in multiple currencies, can allow an element of arbitrage to capitalise on opportunities that may arise – between one […]
Making the most of your cash: demystifying the money markets
There is far more to the money markets than is suggested by their reputation as a holding station for cash. The asset class can offer flexibility, diversification, shelter from market volatility and, in an environment of elevated interest rates, they can deliver compelling yield. In this article, we outline what the money markets are, how […]
Investing in the now
It is hard to live in the present in general, but that is particularly true in business and finance as so much is predicated on what comes next. Whether it is the big ‘E’ in the equation for determining future value or the lower-case ‘e’ of the word itself, expectations rule. But in the case […]
Where are the best opportunities at the short end of the curve?
Short Term Investments Committee
Higher for longer
2024 Outlook
The overlooked appeal of short-dated euro corporate debt
A comparison between short-dated and longer-dated investment grade euro-denominated corporate debt suggests front-end investors receive a similar yield and spread, without any deterioration in the credit fundamentals, according to our analysis. While it remains imperative to always approach each issuer on a standalone basis, we believe, the short-dated euro corporate universe provides a particularly compelling […]
Insight across the fixed income spectrum
The significant repricing of EMD risk last year provides a pronounced opportunity for attractive forward-looking total returns. Even in an environment where interest rates plateau and dip over the next year, money market funds will continue to offer attractive yields compared to recent history. Federated Hermes real estate debt strategy seeks to deliver a return […]
Not your average credit cycle
Three things we learned: Issuers are preparing for a new normal. Nothing’s written in stone but higher for longer has already profoundly affected credit market fundamentals. Dispersion could be a central theme of 2024. Short-term money markets have not witnessed significant outflows… yet. Expectations are for asset growth to continue into 2024 but will be driven by institutional […]
Up then (marginally) down again
market snapshot
