Debt LPLink’s Post

We are getting ready to send our monthly update to institutional cash-management clients. 🟣How have risk-free (TSY) yields shifted? 🟠How have risk yields shifted? And given client objectives, do we need to evolve the portfolio? Managing bonds is COMPLETELY different than managing stocks. Since you are told a bond's yield, and yields change, preferences for which types of bonds to own can (and should) change. Whereas for stocks, which don't have relevant yields and are highly volatile, trading frequently is unproductive. We've seen a rally in yields since last month in the 6MO, 1YR, and 2YR TSY yields. Means if an investor doesn't need their money back quickly, they may consider locking in a longer-term agreement (bond) for guaranteed yield for longer. Locking in a 4.7% yield for 2 years, especially, could look fantastic if rates move downward quickly. On the bottom half of the visual, corporate spreads (the additional yield of a risk bond over a risk-free bond) have narrowed, meaning you expect to get rewarded less-and-less for taking risk. All else equal, investors should prefer risk-free TSYs more than they did last month. While the math is complex, there are plenty of simple, elegant solutions to implement a thoughtful strategy. These yields are your expected return, so while not everyone should be slinging around bonds every month like a cowboy, at a certain level of wealth, complexity, or needs — it impacts financial outcomes great deal where you position yourself on the yield curve. YCharts #treasurymanagement

I recently contributed to an article in The Globe and Mail discussing the behavioral shifts investors often experience when their portfolios are performing well, and why it's important to stick to a financial plan in both good and bad market environments. It's crucial to stay focused on the long-term! You can read the full article here: 👉 https://lnkd.in/gfaKwdpT Tozser Wealth Management | National Bank Financial #FinancialAdvisors #InvestmentStrategy #MarketVolatility #FinancialPlanning #TozserWealthManagement #TheGlobeAndMail #NationalBankFinancial

What is the likely impact of higher interest expense on labor, capital expenditures, and—potentially—earnings? Are there contagion risks across the credit landscape? What new solutions are credit investors devising in their playbooks to stay ahead of their peers? Please join us at Milken conference on May 6 as Meghan Neenan, Managing Director and North America Head of Non-Bank Financial Institutions at Fitch Ratings, will share her insights at a panel discussion on credit markets. Learn more: https://ow.ly/vTnF50RlF5O #MIGlobal #Conference #CreditMarkets #Panel

Is the Wealth Management Industry Now Consolidating?: Interest rate developments have a profound impact on financial markets and, consequently, on the players within the industry. What happens if rates now sustainably decline? #AVIIndex #AVIIndex

It's out! Brand-new Financial Times data visualisation project, explaining how private equity entangled banks in a web of debt. “There should not be a pocket of the market that touches on so much of the economy in such a sizeable way, where we can say, oh there’s leverage, and then very few of us can explain what that leverage means and why it might — or might not — be risky”, says Victoria Ivashina, of Harvard Business School Story by Ortenca Aliaj, Sam Joiner, Sam Learner, Irene de la Torre Arenas, William Louch & I https://lnkd.in/gVKvAuEh

Insights are more powerful when they make sense for your clients. With recent #RateCuts, PIMCO’s Advisor Forum offers you resources to enhance your client conversations. Access the Ahead of the Curve playbook today and gain valuable #bond market insights. https://bit.ly/4hzqww9

Another good article on private markets, this time from the IMF's forthcoming Global Financial Stability Report. This one focus on the rise and risks of private credit, given the opacity of the asset class and it's the large size (+2 trillion USD globally). I personally prefer private credit to private equity 😉. https://lnkd.in/dekBy7ny

Market update. Risk assets trended upward, driven by strong performance in #Equity Hedged and Credit / Income strategies. Relative Value saw mostly positive returns, while #Trading strategies had mixed results. Get the full details in the report at https://bit.ly/3Zi8SpQ #HedgeFunds #Credit #HFS #ShareUBS Please note that index returns shown in the article are for illustrative purposes only and may not be available for investment. Past performance is not indicative of future results.

Private credit has surged to $1.7 trillion, but with growth comes complexity. Limited market transparency, valuation uncertainties, and lack of standardized metrics are raising critical questions about market opacity and risk assessment. Our latest analysis by Volkan Kubali and Ching Watson dives into market dynamics, verification challenges, and a revealing case study on loan variations. Read the full analysis below. #PrivateCredit #FinancialMarkets #MarketAnalysis #Investment

Schroders Credit Lens April 2024: your go-to guide to global #credit #markets. Our monthly analysis highlights the charts and data that matter to #investors in corporate credit: https://okt.to/rQHFhd