Newfleet offers their views on the oil situation.
Six reasons why we don’t believe the Fed will cause another EM crisis.
Newfleet’s monthly EM debt recap: September challenges create value in the sector.
Newfleet’s cornerstone philosophy emphasizes relative value across the fixed income market.
Newfleet blog highlights fed funds futures, rate hike probability.
Newfleet offers a late summer update on the EM debt market.
Newfleet blog update offers comments on the bank loan market, highlights strong fundamentals.
Stephen Hooker, Newfleet’s head of foreign research, talks inflation, interest rates, and his biggest second half concern.
Newfleet Asset Management comments on yesterday’s U.S. sanctions on Russian.
Streak of positive returns continues in June for emerging markets debt – Newfleet reviews the data.
EM debt posts another strong month in May; get sector details and insights in Newfleet’s latest blog.
Newfleet’s latest blog offers timely observations, continued support of the bank loan market.
Consider correlation within fixed income when interest rates rise.
Will they or won’t they? Last week, Federal Reserve Chair Yellen testified before the Senate Banking Committee the central bank’s plans to keep interest rates low for some time, yet minutes from the Fed’s January meeting reveal internal debate about whether the timetable to raise short-term rates should be sooner rather than later.
In 2013, floating rate bank loans demonstrated a healthy resilience to interest rates during a volatile year for fixed income.
Newfleet blog focuses on long-term total return history of bank loan market
Bank loans proved to be very resilient during this summer’s Treasury volatility and remain a leading fixed income sector for the year, returning 3.53% through September (S&P/LSTA Leveraged Loan Index).
From our multi-sector vantage point, we continue to see very large corporate bond offerings come to market that not only fill, but are oversubscribed.
Yields on the 10-year U.S. Treasury spiked 54 basis points during the month of May. Today (June 3), the 10-year sits at approximately 2.18%.
The emerging markets (“EM”) debt asset class is an approximately $2.5 trillion market – twice the size that it was in 2008, and twice the size of the U.S. high yield market today.
In our view, interest rate risk deserves as much attention as credit risk when investing in fixed income markets. Investor demand for yield and, in the case of investment grade corporate bonds and Treasuries, “safety” has driven bond prices to all-time highs and yields to corresponding lows.
Leveraged loans to finance dividends have doubled this year.
Barclays US Treasury Index is yielding 0.91% with duration of 5.5 years.
What is QE3?
The Fed expects to keep short term rates near zero until at least mid-2015.
As multi-sector fixed income investors, we have a large team of sector specialists whose job is to uncover opportunities in their sectors.
As deep value investors, we look for opportunity across all 14 sectors of the bond market, which, in aggregate, adds up to about $22 trillion – five times the size of the equity markets.
Bloomberg recently reported that investors poured $729 million into U.S. floating rate bank loan funds in April, based on preliminary data from research firm EPFR Global – the largest inflows to the sector in 11 months.
Past performance is not a guarantee of future results.
Virtus Investment Partners provides this communication as a matter of general information. The opinions stated herein are those of the author and not necessarily the opinions of Virtus, its affiliates or its subadvisers. Portfolio managers at Virtus make investment decisions in accordance with specific client guidelines and restrictions. As a result, client accounts may differ in strategy and composition from the information presented herein. Any facts and statistics quoted are from sources believed to be reliable, but they may be incomplete or condensed and we do not guarantee their accuracy. This communication is not an offer or solicitation to purchase or sell any security, and it is not a research report. Individuals should consult with a qualified financial professional before making any investment decisions.