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  • 26/11/2019
    Fixed Income
    Fraser Lundie, CFA
    Strong performance in credit markets since the start of this year means that many high-yield bonds now trade to call.
  • 20/11/2019
    Fixed Income
    Fraser Lundie, CFA
    Your Questions Answered: a quarterly Q&A series featuring the top questions that clients and prospective clients ask our investment teams.
  • 14/11/2019
    Fixed Income
    Andrew Jackson
    Join Andrew Jackson, Head of Fixed Income, and Fraser Lundie, Head of Hermes Credit, for the inaugural 360° webinar.
  • 20/09/2019
    Fixed Income
    Fraser Lundie, CFA
    We are joined by the Hermes Multi Strategy Credit team for our quarterly Q&A series.
  • 13/09/2019
    Fixed Income
    Fraser Lundie, CFA
    A flexible, all-weather approach to credit investing has risen in popularity during the past decade.
  • 08/07/2019
    Fixed Income
    Andrew Jackson
    One year on from its launch, we ask: how has Hermes Unconstrained Credit performed?
  • 30/05/2019
    Fixed Income
    Fraser Lundie, CFA
    As the Multi-Strategy Credit hits a key milestone in June, Fraser Lundie, Head of Hermes Credit, looks back on how the strategy has fared in challenging markets since inception.
  • 22/02/2019
    Fixed Income
    Fraser Lundie, CFA
    Fraser Lundie, Head of Hermes Credit, introduces the Unconstrained Credit investment process. The strategy provides unconstrained, high-conviction investments across global credit, designed to capture superior relative value.
  • 21/02/2019
    Fixed Income
    Fraser Lundie, CFA
    Fraser Lundie, Head of Hermes Credit, introduces the Unconstrained Credit strategy, which provides unconstrained, high-conviction investments across global credit, designed to capture superior relative value.
  • 08/01/2019
    Fixed Income
    Fraser Lundie, CFA
    After navigating through Q3, which historically tends to be a difficult quarter, several common themes are beginning to emerge across US money centre banks. Our thesis on the sector remains intact, with fundamentals continuing to improve despite pressure on revenues. Citigroup was the standout this quarter, but Bank of America lagged. Several years of the so-called zero interest rate policy are taking a toll on net interest incomes for the sector and forcing the banks into aggressive rounds of cost cutting. Regulation and oversight remains the main driver of industry fundamentals, credit profiles and spread movements. Senior and T2 issuances will likely increase on Orderly Liquidation Authority and Total Loss Absorbing Capital (TLAC) needs. We believe increased loss absorption capital will be positive for our bonds. P&Ls: Reported profitability did range from 7% of return on equity at Bank of America to 12% at Wells Fargo, which had the help of an outsized $0.9bn of equity gains Soft mortgage banking trends came to us as no surprise given further tightening of mortgage standards in the first half of the year, as well as lower volumes. We will be watching these mortgage lending standards closely, as mortgages represent a little less of 70% of US consumer debt and could be drag on GDP growth forcing the US Federal Reserve to keep rates lower for longer.
  • 12/12/2018
    Fixed Income
    Fraser Lundie, CFA
    Disruption is changing the face of many industries: electric and autonomous vehicles are threatening traditional car manufacturers, while the penetration of ecommerce is transforming consumer services. In this issue of Spectrum, we explore how a wave of disruptive change has impacted the composition of global equity markets more severely than the high-yield bond market. We also explain the importance of active high-yield allocation to a risk-balanced portfolio in an investment landscape that is increasingly being upended by technological progress and business-model disruptions.
  • 25/11/2018
    Fixed Income
    Fraser Lundie, CFA
    Hermes Investment Management, the $46.9 billion manager, has announced the appointment of Nachu Chockalingam as Senior Emerging Market Debt Portfolio Manager. Based in London, Nachu reports into Fraser Lundie, Co-Head of Credit. The appointment is representative of the firm’s approach to providing current and prospective clients with access to all areas of global credit markets. Nachu will help manage the performance and risk of existing emerging market allocations across all liquid credit strategies. This includes the Hermes Unconstrained Credit Fund, which was launched in May 2018 and has since raised $386 million[1].