With the drop in overnight rates and credit spreads, credit investors are having to take far more risk to earn the same return
Bite size updates on the RBA’s responsibility for bubbly house prices and Greece’s rating upgrade and bond issuance.
Bite size updates on the Australian Business Securitisation Fund, securitisation downgrade risks, TLAC and Deutsche Bank
How is it possible that a “bear” can position their portfolios for the likelihood of a credit downturn and continue to outperform?
Covenant Lite You know it’s late in the credit cycle when credit investors give away their key protections in return for just a little more yield. This acquiesce comes in different forms, including higher levels of leverage, longer dated debt, subordinated debt and weakened or eliminated covenants commonly referred to as “covenant lite”. This risk […]
Bite size updates on the Libor spike, Toy’s R Us, franking credit changes and the Banking Royal Commission
Bite size updates on US government debt, Chinese margin lending and bank capital
Bite size updates on high yield spreads, Puerto Rico, Venezuela and China.