Search this website. You can use fund codes to locate specific funds

Authors

  • 13/03/2019
    Fixed Income
    Nachu Chockalingam
    Opportunities to engage on ESG issues in EM credit are plentiful
  • 20/02/2019
    Fixed Income
    Andrey Kuznetsov
    Top-down and fundamental factors support robust performance by emerging-market credit instruments.
  • 25/10/2018
    Fixed Income
    Andrey Kuznetsov
    Latin American countries have been convulsed by political and economic tumult in recent months. On Sunday, Brazilian voters will go to the polls in the second-round runoff of a presidential election that has been dominated by three issues: economic weakness, corruption scandals and rising levels of violence.
  • 18/09/2018
    Fixed Income
    Andrey Kuznetsov
    In this issue of Spectrum we discuss the impressive growth of credit markets beyond the US and the compelling opportunities this presents for investors seeking greater diversification. We also explore the potential for generating alpha through active engagement on environmental, social and governance (ESG) issues. The great European bond boom The eurozone crisis and Brexit have dominated headlines in recent years, but – behind the scenes – something of a mini-economic miracle has been taking place in the European credit markets: the rise of the European corporate bond. Before the launch of the euro in 1999, Europe’s corporate lending market was dominated by local banks operating at individual country level. However, in recent years, the powerful combination of the single currency’s growth, regulatory change and the development of a liquid corporate bond market has led to a boom in companies using the bond markets as a means of raising debt; the number of issuers coming to the high yield market has more than doubled in the last decade, from 139 in August 2008 to 283 as of August 2018. Source: ICE Data Indices LLC, Hermes Credit as at August 2018.
  • 21/06/2018
    Fixed Income
    Andrey Kuznetsov
    Turkish parliamentary and presidential elections will take place this Sunday amid a febrile political and economic climate. In recent months, the country has been grappling with double-digit inflation, a pressured lira and fears over the independence of its central bank. As voters prepare to go to the polls, we assess the investment landscape in Turkey. Turkey is no stranger to political instability. On Sunday, Turks will go to the polls for the sixth time in four years, and for the second time under emergency law after President Recep Tayyip Erdogan brought forward the election by 18 months. The move, Erdogan said, reflects the country’s need to “overcome uncertainty”, but critics argue he wants to push through the vote before the country’s economic woes get materially worse. In Turkey, polls are quite unreliable, but for now it looks like Erdogan will win the presidential race. However, it is likely that his victory will only be sealed in the second round run-off, which will take place on 8 July, should no candidate receive an outright majority this weekend. The parliamentary election, however, looks too close to call. There is a risk that Erdogan’s ruling AK Party and the nationalist MHP party will not retain a parliamentary majority after Sunday’s vote. But success for the opposition will probably make it more difficult to pass much-needed fiscal and structural reforms. Such an outcome would cause more uncertainty for the country and investors, and increase the likelihood of further elections.
  • 17/04/2018
    Fixed Income
    Andrey Kuznetsov
    Almost two years ago, we argued that the market for European hybrids – instruments that blend features of debt and equity – was attractive for both issuers and investors. Today, we revisit the case for hybrids and ask: in the growing global hybrid market, where is the relative value?Hybrids have developed a track record with both issuers and investors in recent years: investors are attracted by the yield pick-up they offer, while they are a relatively cost-effective funding instrument for issuers.
  • 04/12/2017
    Fixed Income
    Andrey Kuznetsov
    A major question facing credit investors over the next year is the fate of US tax reform. The House of Representatives and Senate have both released their sweeping tax reform packages in recent weeks. But uncertainties remain as both chambers must reconcile their differences. As the year-end deadline to reform the US tax system approaches, we assess how proposed changes in interest tax deductibility could have far-reaching implications for credit markets. Congressional Republicans have taken important steps in recent weeks toward the biggest overhaul of the US tax system since the 1980s. The House of Representatives passed its tax bill earlier this month. And last week, the Senate voted 51-49 to pass its version of the tax reform bill. But there are sharp differences between the two proposed bills and reconciling them will be challenging for both chambers. As such, it remains uncertain whether they can meet President Trump’s year-end deadline. One particular proposal that could significantly impact credit investors has come from the House of Representatives. It wants to cap the tax deductibility of interest payments exceeding 30% of a company’s earnings before interest, tax, depreciation and amortisation (EBITDA). In contrast, the Senate proposes limiting it to 30% of pre-tax net income.