PRESS CENTRE

Five trends shaping expectations for Global Credit fundamentals in 2022 Our Credit team has become moderately cautious on the outlook for global fundamentals 10/02/2022 - Audra Delport

China Property: are the new rules on escrow accounts a buy signal for offshore bonds? New escrow rules could mark inflection point Chinese property has been waiting for 24/01/2022 - Robin Usson

Federated Hermes launches Climate Change High Yield Credit Fund seeded by AP1 New Credit Fund launch aiming to deliver positive impact that supports a low-carbon future 08/09/2021 - Fraser Lundie

All eyes on Sustainability this Earnings Season Our dedicated commitment to sustainable wealth creation means we are not only busy forming financial expectations for the upcoming earnings season, but ESG expectations too. 18/01/2021 - Fraser Lundie

Looking into 2021 with Federated Hermes Senior management, the investment floor, EOS and our responsibility office share their outlooks for next year. 19/11/2020 - Saker Nusseibeh, CBE

Without a ‘Blue Wave’, will US energy companies steer towards a green future? In the run-up to the US election, many investors had positioned themselves for a ‘Blue Wave’. Yet, as it became clear that Biden’s Presidency would not be accompanied by a majority Democratic senate, oil and gas stocks rallied and renewable energy producer stocks fell. The absence of a senate majority has cast doubt on the now President-Elect’s ability to push through a climate-focused plan that would see an overhaul of federal energy policy and pledge to rejoin the Paris accord. 12/11/2020 - Audra Delport

Federated Hermes' latest on the US Elections Managers across our investment floor in London and Pittsburgh comment on the US Election 05/11/2020 - Eoin Murray

Federated Hermes comments ahead of US Election Federated Hermes comments ahead of US Election 28/10/2020 - Eoin Murray

Green bond-financed projects are necessary but not sufficient In its September Quarterly Review, the Bank of International Settlements (BIS) published a much-needed article that analysed the impact of fighting the climate crisis at the firm-level from corporate projects funded by green bonds 05/10/2020 - Mitch Reznick

Credit Investors not valuing their privacy Evidence shows that bonds issued by private companies offer no premium versus those with public equity market capitalization. Historic data coupled with elevated risks highlight why Fraser Lundie, Head of Credit at the international business of Federated Hermes, views this as a mispricing. 17/09/2020 - Fraser Lundie

Federated Hermes expands Fixed Income team with Investment Director hire Reflecting the growing interest from clients and prospects in fixed-income solutions, Federated Hermes today announced the appointment of Anna Karim as Investment Director in its Fixed Income team in London. 08/06/2020

Discerning dislocations in credit markets Markets have been roiled by extreme volatility through the course of March, driving major dislocation between recent price action and intrinsic value. Andrew Jackson, Head of Fixed Income at the International Business of Federated Hermes, assesses four sectors where pricing and value seem particularly distorted. 31/03/2020

Federated Hermes & Beyond Ratings: New research highlights strong correlation between ESG factors and developed markets sovereign spreads In a new study conducted with Beyond Ratings, ‘Pricing ESG risk in sovereign credit, part II’, Federated Hermes reveals... 03/03/2020 - Michael Viehs

Credit view: the impact of the coronavirus on industry sectors The novel coronavirus spreading from China has shaken markets and clouded the outlook for global growth. 07/02/2020

UBS, Federated Investors, Inc. and Hermes Investment Management Launch Innovative Fixed Income Impact Funds Federated Investors Inc., Hermes Investment Management and UBS today announced the launch of new SDG Engagement High Yield Credit funds 26/09/2019 - Saker Nusseibeh, CBE

New research highlights correlation between ESG and sovereign spreads Countries that score highest on environmental, social and governance (ESG) issues benefit from tighter credit default swap (CDS) spreads than those with lower ESG scores... 01/07/2019

Hermes strengthens private debt platform with new hire Hermes has announced the appointment of Kevin Roche as a Director for Private Debt and CLO’s. 17/05/2019

Fuelling the M&A pipeline in US oil and gas Audra Stundziaite, Deputy Head of Credit Research, explores the theme of consolidation in the energy sector. 29/04/2019 - Audra Delport

End-of-bull market rumours may be exaggerated Turbulence, disruption and uncertainty have always provided instances of opportunity for the savvy fixed income investor. 05/03/2019

The benefit of the bulk A breed of insurers under-researched by credit investors is taking on the liabilities of more UK pension funds.  In his latest report, ‘UK ‘bulks’ – weighty opportunities in a slim sector’, Filippo Alloatti, Senior Credit Analyst, Hermes Investment Management, examines this niche area of the market, highlighting how it could potentially yield attractive returns. 28/01/2019

Hermes expands global credit team with emerging market debt appointment 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]. 25/11/2018 - Fraser Lundie

Shared interests unite bondholders and shareholders The perceived divergence of priorities between bondholders and shareholders has led some to believe that these investors cannot engage with companies on the same issues. Some – remarkably - even question the legitimacy of bondholders (or other creditors) engaging with companies in the first place. However, given their financial stakes in a company, both types of investors not only have legitimate cause to engage, but also a professional duty to do so. So say, Mitch Reznick, Co-Head of Credit, and Dr. Hans Christoph-Hirt, Head of Hermes EOS, in We Can All Get Along, a new report dispelling myths surrounding joint company engagements between bondholders and long-term shareholders. Writing in the paper, the authors argue that the difference in the payoff profile of equities and bonds is sometimes cited as a reason that bondholders focus less on long-term factors, while shareholders want to see growth. However, there are strategic issues which the pair highlight as being relevant to a company’s current and likely future health and value creation, including the management of ESG (environmental, social and governance) factors. Arguing that although the cash flows from bonds held to maturity will not alter unless operating cash flows are substantially impaired, the authors highlight that unmitigated risks can weaken a company’s ability to fulfil its debt-service obligations. 12/09/2018 - Mitch Reznick

Ways to successfully tap Europe's rich direct lending pipeline In an era of rising correlations, institutional investors are increasing exposure to alternative asset classes. At the forefront of this trend is direct lending, where institutional investors can access sustainable yields and sources of uncorrelated returns. In his latest insight, Patrick Marshall, Head of Private Debt and CLOs at Hermes Investment Management, discusses how to successfully tap expanding opportunities in European direct lending. 02/07/2018 - Patrick Marshall

Hermes Credit strategies hit key milestones As the Hermes Global High Yield, Global Investment Grade, Multi-Strategy and Absolute Return Credit strategies hit key milestones, Fraser Lundie CFA, Co-Head of Credit at Hermes Investment Management, explains how a rigorous investment process has allowed them to weather volatile storms. Marking new milestones This month, our Global High Yield Credit, Multi-Strategy Credit and Absolute Return Credit capabilities mark their eight-, five- and three-year anniversaries, respectively and in July, our Global Investment Grade Strategy will celebrate its eight-year anniversary. These four strategies have the following aims: 1. Global High Yield Credit: generate a high level of income by investing primarily in a diversified portfolio of high-yield bonds. Since its May 2010 inception, it has consistently delivered top-quartile return. 25/06/2018 - Fraser Lundie