Fixed Income

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Private Credit Spreads are below their Historical Average

It is important to remember that Investment Grade Private Credit represents a long-term strategic allocation.

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U.S. Housing: Headlines Suggest Trouble

But what do Mortgage Credit Fundamentals Say?

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The Growing Glut of BBB Debt: Risk Now or Later?

Issuance of BBB-rated corporate debt has soared. How should investors be thinking about risk in this environment?

Will the Retail Industry be the Next Commodity Crisis for the U.S. Credit Markets?

May 24, 2017

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.

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VAR, What is it Good For?

May 2, 2017

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?

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6 Levers Insurance Investors Can Pull to Offset Yield Erosion

April 19, 2017

How can insurers counter the margin compression resulting from new money rates lagging portfolio book yields? In a series of upcoming blog posts, we will highlight opportunities and risks across the six traditional levers that insurance companies can pull to offset this yield erosion.

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Is It Too Late to Buy High Yield? Rebuttals for 3 Common Arguments Against the Asset Class

April 13, 2017

Many “experts” have recently warned of impending doom in the high yield bond market. High yield returns have certainly been impressive since the energy- and commodity-led sell-off of late 2015/early 2016, but our view of today’s economic and market landscape doesn’t lead us to the conclusion that the end is near. Rather, we find reasonable value in the market and used the March sell-off to add high yield exposure.

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What is Investment Grade Private Credit?

April 3, 2017

Private credit is often viewed through the lens of mezzanine below-investment grade debt. But this is only a subset of the asset class. In fact, investment grade offerings account for a large part of the total market. So what do structure, pricing, and liquidity look like in the investment grade private credit market? How are deals sourced best in the investment grade market? The answer may come as surprise to some investors.

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