Bonds: Born to Be Mild
A 30-year bull market for bonds has come to an end, but this does not make a bear market inevitable, in our view.
read moreEmerging-Market Debt: Pure High-Yield Strategies Come of Age
We believe investors should be thinking about emerging-market debt in terms of credit quality buckets (investment grade or high yield) rather than sectors (sovereign or corporate). For some types of investor, pure high-yield strategies can offer significant advantages.
read moreFederal Judge Green-Lights Stockton Bankruptcy
Stockton, California, made headlines last June when it filed for a Chapter 9 bankruptcy. Now, a federal judge has not only given his okay to proceed; he’s also thrown retiree pension benefits into the debate. The big question is whether these benefits can be cut. The outcome could be a groundbreaking decision that would encourage other [...]
read moreChina’s Uncertainties Won’t Stop Renminbi’s Rise
Recent data releases and the transition to new political leadership have created some uncertainty about China’s short-term economic outlook. While positive growth surprises are unlikely in 2013, we still think nothing can stop the long-term appreciation of China’s currency, the renminbi (RMB).
read moreEmerging-Market Debt Offers More than One Kind of Diversification
One key attraction of emerging-market debt is that it can help investors to diversify existing portfolios of developed-market fixed-income securities. But there’s more than one kind of diversification, and more than one way to approach the opportunity, depending on each investor’s objectives.
read moreThe Sand Continues to Shift in High-Yield Bank Loans
Investors continue to pour money into funds that invest in high-yield bank loans, reciting the numerous perceived advantages of this asset class. But investors’ thirst for loans is encouraging borrowers to be aggressive, and the risks seem to be rising. Here are three commonly cited benefits of high-yield bank loans, and our take on why [...]
read moreDon’t Be Afraid of European High Yield…Be Selective
The European financial crisis continues to challenge high-yield investors. Some were wary of Europe’s issues and stepped away last year, only to see European bonds dominate through the unpredictability. Others want in now, but worry that they’ve missed the rally.
read moreHospital “Survivor”: Muni Bondholders Wait to See Who Makes the Cut
To stay solvent, hospitals run a numbers game, charging high prices to patients with private insurance to offset lower payments from Medicare and Medicaid and the uninsured. Some hospitals make a nice profit; others struggle. Now hospitals face a game changer—the Affordable Care Act, which expands Americans’ access to medical insurance but changes the reimbursement [...]
read moreEmerging-Market Debt: Pure High-Grade Strategies Gain Popularity
Investors in hard-currency emerging-market (EM) bonds are starting to change the way they think about the opportunity. For some, this means moving to investment-grade-only strategies.
read moreIs It Time to Get Back into Stocks—or Too Late?
After five years of fleeing stocks for the perceived safety of bonds, US mutual fund investors became net buyers of stock funds in January. While some see the return of the retail investor as a negative indicator for stocks, we say, “Better late than never.”
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