High Yield Bonds

As we have said many times over the past few months, this cycle is likely to be remembered (among other reasons) as being exceptional for its unprecedented momentum.

After a tumultuous 2020 which nonetheless delivered strong returns in many asset classes, fixed income investors are expecting a more normalised trading environment in 2021.

In his latest video, George Curtis discusses our views on high yield defaults over the last few months and what he thinks we can expect in 2021

To mark the fifth anniversary of his firm’s Strategic Income global bond strategy, TwentyFour Asset Management chief executive, Mark Holman, looks at how the COVID-19 crisis has transformed the bond markets in 2020, and where he believes investors should be looking for value heading into 2021.

We have now retraced some 90% of the March widening in European high yield (on a spread basis and relative to the January tights), a recovery trend we expect to continue as economies open up and demand bounces back. 

Unlike the past six months, where nearly all new deals performed well in the secondary market, from here on in that is far from guaranteed. Expect winners and losers.

George Curtis discusses Q3 performance for credit markets and provides his outlook for the rest of the year.

Overall, in our view there may be some temporary volatility ahead which investors can try to sidestep or even take advantage of, but it’s probably not worth trying to be too cute as our medium term outlook is still constructive.

George Curtis discusses high yield and default rates.

TwentyFour CEO Mark Holman provides a macro outlook before discussing his views on a critical US presidential election and how it could impact the economy and the markets.

Gary Kirk and Eoin Walsh hosted a breakout session on the MSB stage where they provided an update on portfolio performance and their outlook for fixed income markets.

Yesterday we showed that for European investors, what we speculated on back in March has come true; that the bond market did recover its losses far more quickly than equities, as shown below.