8 min readThe oil and gas industry is being hit hard from all sides, with a historic glut and a collapse in demand for oil occurring simultaneously. Given the current situation, drastic production cuts across the world will be necessary to support the oil market and limit its inevitable ripple effects on the broader world economy. While…
2 min readAmid expectations that the Fed will soon complete its about-face from hawk to dove with its first rate cut since 2008, cash investors are looking as hard as ever for relatively safe short-term investments capable of delivering decent returns. And many are turning to a market that in the past they often overlooked—corporates with BBB…
13 min readCo-authored by: Matthew Paniati, CFA® DOWNLOAD FULL REPORT Abstract BBB-rated debt continues to offer new possibilities for cash investors. Though it involves taking on incremental credit risk, allowing the purchase of these securities may help alleviate supply shortages while also offering additional return opportunities. Should investors investigate adding BBB names to their portfolios, we recommend…
20 min readDOWNLOAD FULL REPORT Abstract As the post-recession credit cycle matures and a period of historically low interest rates ends, investors are paying increased attention to the rise of corporate leverage. Companies have borrowed heavily in the past decade to fund M&A activity and investor payouts. This has resulted in significant growth in BBB-rated debt for…
2 min readRemember CDO’s, those collateralized debt obligations at the center of the massive mortgage meltdown in 2008? These days, you can expect to start hearing about CLO’s, collateralized loan obligations, that are at the tip of a rapidly growing iceberg of leveraged corporate debt. The recent growth of CLO’s is only one of many warning signs…
1 min readAbstract The GE announcement should be a positive credit event for creditors and bondholders. The divestiture is an event that has been seven years in the making and it will result in a significant reduction of commercial paper outstanding, especially for the direct issue CP market. Short-term corporate bond supply also will suffer. As higher…