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Fixed Income

UK Gilt Yields Rise as Government Hints at Fiscal Rule Changes

The UK government's borrowing costs have risen on global financial markets, following news that Chancellor Rachel Reeves is considering changes to Britain's debt rules, reports The Guardian. Reeves, ahead of next week's budget, is expected to announce at the International Monetary Fund's

Private Credit in Australia Booms as Interest Rates Rise, Banks Retreat

Australia's burgeoning private credit market is experiencing a surge of interest from institutional investors seeking higher returns amidst rising interest rates and a cautious banking sector, reports Bloomberg. This trend is driven by the attractive yields offered by private credit funds, which have become a compelling alternative to

Fixed Income Outlook Positive, UBS Says

Despite climbing US Treasury yields this week amidst election uncertainty and global debt concerns, UBS maintains a positive outlook on fixed income. The Chief Investment Office of the Swiss bank cites anticipated easing of Federal Reserve policy and robust corporate bond fundamentals as key drivers, according to a note published

Why the Rate of Fallen Angel Corporate Bonds is ‘Extremely Low’: Goldman Sachs

US companies are fiercely guarding their investment grade credit status, with a remarkably low number slipping into riskier, high-yield tiers, according to a note published by Goldman Sachs Asset Management. The volume of US debt stripped of its investment grade rating, or fallen angels, has reached its lowest level in

FTSE Russell to Add Indian and South Korean Bonds to Flagship Indexes in 2025

Global index provider FTSE Russell announced on Tuesday that it will include Indian sovereign bonds in its Emerging Markets Government Bond Index (EMGBI) and South Korean government bonds in its World Government Bond Index (WGBI), both starting in 2025. The decision to include Indian securities, which will represent 9.35%

High Yield Bonds Outperform as US Economy Shows Resilience: Nuveen

Fears of a looming US recession are receding as economic data points to a more resilient consumer and cooling inflation, according to a note published by Nuveen on September 30. Last week, the U.S. Treasury yield curve continued to steepen, with risk assets broadly outperforming. The investment manager highlights

Leveraged Finance Markets Roar Back to Life in 2024

The high-yield bond and leveraged loan markets have experienced a dramatic resurgence in the first half of 2024, with issuance volumes soaring and spreads tightening to 15-year lows. According to Brian Tramontozzi, JP Morgan’s North American head of Leveraged Finance Capital Markets, this rebound is driven by a confluence

VIX Rebounds on Fed Rate Cut Uncertainty: Moody's Analytics

US credit markets are exhibiting mixed signals, with investment-grade credit spreads narrowing slightly while high-yield spreads widen, according to the latest report from Moody's Analytics. This divergence reflects a continued belief in a soft landing for the economy, but also growing concerns about the potential for stress among

Private Credit Growth Not Cannibalizing High Yield Market: JPMorgan

Despite the impressive expansion of private credit, which has seen assets under management soar to $1.2 trillion in the U.S., JPMorgan argues this growth is not coming at the expense of the high yield market. A note published by the bank on Friday acknowledges a 25% contraction in

China Turns to Ultralong Bonds to Boost Economy Amid Slowing Credit Growth

China will begin selling a series of long-term special treasury bonds this week, signaling Beijing's commitment to supporting its slowing economy, as reported by Nikkei Asia. The issuance, totaling 1 trillion yuan ($138 billion), will include 20-, 30-, and 50-year bonds, with the first batch of 30-year bonds