Featured Investment Papers: July 2021

Featured Investment Papers: July 2021

Featured Content from Leading Asset Managers

Savvy Investor presents a selection of featured content from top asset managers for July?2021.

These papers include commentaries about the relative attractiveness of credit as an asset class, but also highlight the need for additional?ESG disclosure by both public and private companies. Other papers examine the progress made by Japanese companies in corporate governance and debate whether after one of the deepest but shortest recessions, we are now in a new business?cycle.

Minicycles and Liquidity as a Fixed Income Alpha Lever (MFS IM, 2021)

MFS Investment Management covers some interesting shifts in the behaviour of credit spreads in the market environment which followed the global financial crisis (GFC).

Diversified Credit: Shortening the time to endgame? (LGIM, 2021)

For compliance reasons, this paper is only accessible in certain geographies

In this paper from LGIM they highlight the attractiveness of diversified credit for pension funds approaching the endgame. When considered alongside other assets, the combination of opportunity for return, stable cashflow and integrating ESG exposure should not be ignored.

Strong Economic Recovery and Clear Inflation Pressure (Candriam, Jul 2021)

Candriam argues for a positive view on European equities given the reopening of several economies and ongoing vaccination programmes. Financials remain favoured, with UK banks set to return money to shareholders after passing Bank of England stress tests.

Thematic Investing During a Pandemic (BlackRock, 2021)

For compliance reasons, this paper is only accessible in the United States & Canada

The Coronavirus pandemic has ushered in countless changes in the way we live our daily lives. BlackRock seeks to generate performance for their clients by gaining targeted exposure to these changes by constructing 'baskets' of securities which they have selected to benefit from a particular theme.

Podcast: Sustainability in private credit (M&G Investments, Jul 2021)

For compliance reasons, this paper is only accessible in certain geographies

M&G Investments’ Head of Private Credit Catherine Ross and Fiona Hagdrup, Director for Leveraged Finance, discuss whether investments in private credit can be entirely compatible with a desire to increase sustainability, given a less stringent disclosure regime.

Japanese Corporate Governance and Regulatory Reform (T. Rowe Price, Jul 2021)

For compliance reasons, this paper is only accessible in certain geographies

T. Rowe Price highlights the acceptance of higher corporate governance standards by Japanese corporates, which has in turn led to better company performance and improved returns to shareholders.

Was it Really a Recession? (MetLife Investment Management, Jun 2021)

MetLife Investment Management argues that whilst technically the economic disruption caused by the Covid pandemic could be called a recession, it doesn’t share many of the usual similarities with historic recessions. Unprecedented government and state intervention allowed many businesses to survive – and as a result, it is unlikely the world is in a new business cycle.

Breaking Down Risk in High-Yield Bonds (Janus Henderson, Jul 2021)

For compliance reasons, this paper is only accessible in the United States & Canada

Janus Henderson’s U.S. High Yield team outlines various measures of risk across the high-yield bond market, and how being more aware of them can reveal hidden opportunities.

Better ESG Disclosures Required in Leveraged Finance (PGIM Fixed Income, 2021)

PGIM Fixed Income argues for a greater basic level of ESG disclosure from both private and public companies and suggests that a standardised framework may help with disclosure levels.

ABOUT THE AUTHOR

Andrew Perrins is a former Actuary and Asset Allocator. After qualifying as an Actuary, he worked for 15 years in investment management, serving as Director of Asset Allocation for Abbey Life and for Chase Manhattan, before setting out on a more entrepreneurial path.

To contact him,?email?[email protected]

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