Fund buyers warm up to high yield bonds again
European investors reduced their high yield bonds holdings by a net €12bn last winter. But the arrival of spring is heralding a change in sentiment.
European investors reduced their high yield bonds holdings by a net €12bn last winter. But the arrival of spring is heralding a change in sentiment.
Recent high yield bond market gains may dwindle due to volatility and weak global growth, according to Nicolo Carpaneda, investment director, fixed income at M&G.
Money has poured into high yield bond funds at a rare pace over the past month but is this a sound move based on merit, or a case of return-starved investors clutching at straws?
Investors are fleeing from emerging market debt, and optimism for any recovery in the near term is low, particularly for local currency government bonds.
Investors in the beleaguered Guernsey-based EEA Life Settlements Fund have been offered the opportunity to register some, or all, of their shares for a proposed secondary share sale in March or April this year. But caution has been urged.
The majority (69%) of UK-based IFAs expect dividends to fall to 5% or less this year having averaged 9.3% over the past four years, according to research from Exchange Traded Products (ETP) provider Source.
Providers expecting the reduced lifetime allowance (LTA) to spur offshore bond sales to UK residents are guilty of “wishful thinking” according to a number of distributors, who are failing to see any increase in appetite.
The expected 10 basis point rate cut by the European Central Bank this week would provide a “big boost” to peripheral sovereign markets such as Italy, according to Tanguy Le Saout, head of European fixed income at Pioneer Investments.
Cayman Islands-based insurer Knighthead Annuity & Life Assurance Company has launched its first fixed index annuity (FIA) for global clients.
Those who believe that ‘risk-on, risk-off’ is consigned to the past look away now, with record inflows into US high-yield indicating that sentiment has shifted once again to the spicier end of the fixed income spectrum.
The British pound is “not the only casualty” of uncertainty resulting from the upcoming referendum on whether to remain or leave the European Union, according to head of credit strategy at BlueBay Asset Management, David Riley.
Fixed income funds saw outflows of £267m in January 2016, the Investment Association said on Monday, which accounted for more than half the total outflows of £463m ($642.5m, €589m) recorded for the month.