The securitised sector offers respite from overcrowded corporate credit markets and inefficiencies continue to create opportunities.
Valuations have become more attractive and fundamentals are reasonably positive. But a period of transition looms, with central bank support being withdrawn and government bonds now offering a more compelling alternative than they have in many years.
The storm clouds are gathering for fixed income investors who may soon have to leave behind the quiet life which they have become accustomed to since 2008.
It has been a year since Donald Trump’s presidential inauguration. We take a look at how financial markets have performed.
We expect the current unprecedentedly benign market conditions ultimately to be disrupted and see convertible bonds affording effective protection against this.
Global corporate bond valuations are elevated and insufficient to compensate for risk, but there will continue to be selective opportunities to take high conviction positions.