Education Hub

Our Fixed Income 101 series covers common fixed income investment themes and some more technical portfolio management techniques.

Fixed Income 101 Investing for income with bonds

Fixed Income 101: Income investing

The goal of income investing is to ensure that your portfolio generates a steady source of revenue regardless of market conditions.

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Fixed Income 101: Comparing yields in different currencies

Fixed income managers always want to have the flexibility to look for the best value across their investment universe, and in our view they therefore need the capacity to buy bonds in different currencies.

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Fixed Income 101: Roll-down

Roll-down is the capital gain created by the natural fall in a bond’s yield as it approaches maturity. As a fixed income investor, it is probably the most you will ever get paid for doing nothing.

Fixed Income 101 Inflation-linked bonds

Fixed Income 101: Inflation-linked bonds

Inflation is widely understood to be bad for bonds. Fundamentally, this is because inflation erodes the value of the coupon and principal payments that fixed rate bondholders receive in the future.

Fixed Income 101 - ABS CLO trading

Fixed Income 101: Trading ABS and CLOs

Bids Wanted in Competition (or BWIC) lists are a unique characteristic of the ABS and CLO markets, where they are widely used in secondary trading when investors are looking to sell bonds.

Our Everything you need to know about… series walks you through the typical structure, benefits and risks of some of the more specialist securities that often feature in TwentyFour portfolios, such as subordinated bank bonds and asset-backed securities.

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Everything you need to know about ABS

Asset-backed securities (ABS) are a type of bond, typically issued by banks or other lenders. What makes ABS different to conventional bonds, such as government or corporate bonds, is that they are ‘secured’ against a diversified pool of loans with similar characteristics.

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Everything you need to know about AT1s

Additional Tier 1 bonds (AT1s) are part of a family of bank capital securities known as contingent convertibles or ‘Cocos’. Convertible because they can be converted from bonds into equity (or written down entirely), and Contingent because that conversion only occurs if certain conditions are met, such as the issuing bank’s capital strength falling below a pre-determined trigger level.

Everything you need to know about CLOs

Everything you need to know about CLOs

Collateralised Loan Obligations, or CLOs, are bond instruments issued to fund a specific pool of loans, typically senior secured or ‘leveraged’ loans, to companies. The bonds are split into tranches that can carry different ratings (and yields) according to how senior they are in the CLO’s capital structure, normally from AAA notes at the top to equity notes at the bottom.

Our animated explainers are a complete visual guide to more complex and commonly misunderstood parts of fixed income such as Additional Tier 1 (AT1) bonds, residential mortgage-backed securities (RMBS), collateralised debt obligations (CLOs) and Corporate hybrids.

What are corporate hybrids and how do they work? 2

3 Apr 2024 Market Update

What are corporate hybrids and how do they work?

Corporate hybrids are bonds issued by non-financial companies that combine characteristics of both debt and equity.

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12 May 2021 Market Update

What are AT1 bonds, and how do they work?

Additional Tier 1 bonds, or AT1s for short, are part of a family of bank capital securities known as Contingent Convertibles or ‘Cocos’. They are bonds issued by banks that contribute to the total level of capital they are required to hold by regulators.

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16 Sep 2020 Market Update

What is a European CLO, and how do they work?

European collateralised loan obligations – or CLOs – are bonds issued to fund a specific and diverse pool of corporate loans to firms of different sizes and in different industries all over Europe.

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27 Nov 2019 Market Update

What is an RMBS, and how do they work?

Residential mortgage-backed securities (RMBS) are an under-utilised asset class for many investors, despite boasting some of the lowest default rates across the global fixed income market and offering higher yields and greater investor protections than vanilla corporate bonds of the same rating.

Our Back to Basics series is dedicated to simplifying the complex world of finance, with a focus on the fundamental principles of fixed income.

Back to Basics: Bank Capital

30 Apr 2024 Event Replay

Back to Basics: Bank Capital

On our third educational webinar in our 'Back to Basics' series, Jakub Lichwa (Portfolio Management) and Dillon Lancaster (Portfolio Management) from our Multi-Sector Bond team gave their valuable insights into the importance of maintaining sufficient levels of bank capital to uphold financial stability.

Back to Basics: CLOs

21 Mar 2024 Event Replay

Back to Basics: CLOs

On our second educational webinar in our 'Back to Basics' series Aza Teeuwen (Partner, Portfolio Management) and Elena Rinaldi (Portfolio Management), provided a comprehensive understanding of the key aspects and trends within the European CLO market.

Back to Basics: RMBS

6 Feb 2024 Event Replay

Back to Basics: RMBS

On our first educational webinar in our newly launched 'Back to Basics' series, Aza Teeuwen (Partner, Portfolio Management) and Douglas Charleston, (Partner, Portfolio Management) provided a comprehensive understanding of the key aspects and trends within the European RMBS market.