Investors are concerned about the deterioration of corporate debt quality, marked by lower credit ratings and a large share of covenant-lite issuance in the loan market. Credit is typically a non-recessionary asset class and should perform well so long as there is no impending recession, which at the moment looks unlikely.... Show More
In August 2018, the Commonwealth Bank raised $3.5bn by issuing a dual tranche three and five year bond deal at a credit spread of 73 basis points (bps) and 93bps (respectively), in what was the largest corporate bond transaction since the Global Financial Crisis. Three months later Westpac took over... Show More
Credit is smouldering right now. When that smoke becomes fire, the door becomes a key hole and only the first few get through. The rest get burnt. Holding credit risks with your equity holdings into 2019 and 2020 seems mighty dangerous. Don’t get barbequed this season. Show More
In 2007 Howard Marks released a memo titled The Race to the Bottom, the note shared his view that investment markets are like an auction house, the item that’s up for sale goes to the person willing to pay the most. When buyers are scarce the items for sale go... Show More