Fixed Income

The authorities are now rapidly promising huge aid packages, but how do these aid packages find their way to the people that need aid? This is what is missing

In the last few days the World Health Organisation has declared COVID-19 a global pandemic, the Italian government has imposed a nationwide lockdown on 60 million people, and President Trump has banned all travel to the US from Schengen Area European countries for 30 days.

Partners and Portfolio Managers Ben Hayward and Doug Charleston provide an update on the TwentyFour Income Fund and TwentyFour Monument Bond Fund.

Partner and Portfolio Manager Eoin Walsh provides an update on recent market developments and looking at the portfolio positioning of the Strategic Income Fund.

Partner and Portfolio Manager Gary Kirk provides an update on recent market developments and the positioning of the TwentyFour Select Monthly Income Fund

Partner and Portfolio Manager Gary Kirk provides an education session on AT1s and RT1s

Given the recent volatility in global markets, Partner and Portfolio Manager Chris Bowie hosted a webinar where he provided an update on investment grade credit. Chris discussed his current views on the asset class, before looking at positioning of his two funds; Absolute Return Credit Fund and Corporate Bond Fund.

Our take on all of this is that the central bank has acted in a very targeted and timely way, adding large volumes of liquidity at even lower rates, along with significant capital to the banking system.

Monday was one of those days investment professionals will remember all their lives, and compare with similar standout days from the past.

Companies, even earnings pressured ones, now need to seriously consider the negative impact on their long term cost of capital from short term decisions to shore up P&L.

The big question for us now is how long the impact of the virus may last, and how much of a supply and demand shock will there be as a consequence of the various efforts to stall its spread.

While there has been a rally in risk-off assets since January over coronavirus fears, credit markets have been largely resilient given strong technical demand, driven by huge inflows for bond funds and the wall of cash sitting on the sidelines.