GSE reform is likely to take hold in the current political environment. The impact this reform will have on the mortgage market has the potential to create a wealth of opportunities for fixed income investors.
Perhaps the largest untapped opportunity for e-commerce, groceries have officially joined the ranks of the disrupted consumer-spending categories. Our fixed income team breaks down the likely impact this game-changing deal will have on the real estate, securitization and corporate credit markets.
Investing in credit markets when spreads are below average can be disconcerting. However, a closer analysis reveals compelling evidence for maintaining a tactical, near-term bent towards corporate credit in the current market environment.
Recent headlines paint a picture of subprime auto lending as the ticking time bomb for the next “great financial crisis.” But are investors really staring down the edge of a cliff? While a closer analysis reveals undeniable parallels to the mortgage crisis, we don’t believe securitized credit investors should hit the panic button just yet.
In April, we provided support for allocations to high yield by rebutting three common arguments against the asset class. “Retail is the new energy” was an argument against high yield in April and one that continues today. Given the headlines surrounding the “demise” of retail, we believe it is appropriate to offer investors a deeper analysis of the topic and provide a broader perspective across credit markets.
While no one measure is capable of capturing the full breadth of risk within a fixed income portfolio, VAR (Value at Risk) is an important measure within an investor’s tool kit. However, like any tool, VAR must be used with a full understanding of its benefits and drawbacks. With this in mind, we set out to answer: VAR, what is it good for?