Assets in illiquid credit double in 2016
Assets invested in illiquid credit more than doubled in 2016 from $178bn to $360bn, according to a survey by investment consultancy Willis Towers Watson.
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Assets invested in illiquid credit more than doubled in 2016 from $178bn to $360bn, according to a survey by investment consultancy Willis Towers Watson.
Has the run into emerging market bonds only just started, or have flows already reached saturation point? And what does that mean for the outlook for the asset class?
Guillermo Osses, head of emerging market debt at Man GLG, reveals where he see the best return opportunities. But he also issues a warning.
Investors in Finland have increased their allocations to emerging market debt and high-yield bonds in an effort to maintain yields. Though spreads have compressed below their long-term average, they feel forced to maintain, or even increase their allocations.
Emerging markets are back. EM equities and debt were among the most popular asset classes with European investors in February, according to fresh Morningstar data. Developed market equity flows, however, took a surprising turn.
2016 saw some highly successful launches of fixed maturity bond funds as investors took the opportunity to lock in attractive yields combined with reduced duration risk. But are such products still worth buying now, with credit spreads having sunk below their long-time average?
Investors are stepping up their allocation to high-yield bonds and emerging market debt. The pair were the two best-selling asset classes in January, according to Morningstar fund flows data.
European investors have turned positive on emerging market debt again in January after two months of net outflows, reports Blackrock.
Morten Christensen, investment management director at the Norwegian family office Aars, tells Expert Investor’s Tjibbe Hoekstra how he is navigating the pitfalls of the direct loan space.
While emerging market debt saw record quarterly inflows globally during the third quarter of 2016, the global hunt for yield does not benefit developed market junk bonds. But this could soon change.
ECB intervention has pushed European corporate bond yields down to unrealistic levels. It may therefore be a good idea to buy some sterling credit, regardless of how the Brexit saga will play out.
Emerging market debt ETFs saw record net inflows of $5.8bn over the third quarter globally, according to Blackrock. Total inflows this year have already beaten the previous full-year record set in 2012.