Trade opportunities
November marked a turning point in the last nearly 2 years of fighting inflation with rising interest rates. The market began firmly pricing in the end of hikes and the start of cuts. This is mainly because historically central banks have held rates steady at their peak for no more than about 7 months on average before cutting them again, as economies run into a wall of higher borrowing costs.
Trade opportunities
Here we look at important criteria to consider before investing in and through the life of the bond using the example of OMNI Bridgeway bonds.
Knowledge Series
In this edition we will look at primary deals in the wider market, which are public deals and follow a different process to FIIG-originated deals.
Trade opportunities
The current portfolio yields an indicative 6.61%* to the assumed maturity dates and is an approximate $215k spend.
Trade opportunities
October featured a shift from quiet markets in the first half to a flurry of new bond issues in the latter half, impacting rates. While the US economy showed strength, other indicators raised questions. In the portfolios, noteworthy changes included the introduction of the AMP Limited senior 2026 bond in the Conservative portfolio, a switch from AMPOL, and a similar move in the Balanced portfolio. The High Yield portfolio focused on diversification and RMBS bonds with attractive margins.
Knowledge Series
In this edition we will look at the role USD bonds can play in diversified portfolios of Wholesale Clients.
Knowledge Series
In this article, we discuss the benefits of being a wholesale client and delve into the complexity of structured credit. Structured credit involves pooled assets, payment waterfalls, and various metrics specific to the sector, making it more intricate than standard bonds, with ratings available typically only to Wholesale clients.
Opinion
In this series, we previously discussed how credit ratings assist wholesale clients in assessing bond risks. This edition focuses on FIIG-arranged unrated primary deals available exclusively to wholesale clients. FIIG's mission was to meet the demand from investors for higher yields amid declining interest rates and provide growth opportunities for mid-sized corporates previously excluded from capital markets. To date, FIIG has arranged 75 unrated bond issues, offering attractive returns and resilience compared to high-grade bonds.
Trade opportunities
September saw a rise in longer-term rates. Central banks globally maintained cash rates but signaled possible rate hikes due to inflation. Portfolios remained relatively short, with the Conservative portfolio yielding 6.80%, the Balanced portfolio yielding 7.94%, and the High Yield portfolio yielding 10.29%. Some adjustments were made, including retaining an A-rated Pepper bond for its strong yield and adding a Pepper Money bond for diversity in the High Yield portfolio.
In this article, we discuss the advantages of Wholesale Client status for bond investors and how it expands one's bond choices. We also discuss the criteria for attaining this status and emphasize the benefits, including access to crucial credit ratings from agencies like Standard & Poor's and Moody's, which are essential for evaluating bond issuers. Additionally, it is important to understand and distinguish between Investment Grade and Sub-Investment Grade bonds when evaluating bond risks.