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
This week it's a look at credit risk pricing in the Eurozone. This is a chart I've been using a lot in recent months, of course as of the last week it's looking a bit more interesting now! The reason why I've highlighted this chart in the past is that... Show More
Investment prices keep rising. Valuations are now well beyond long term averages for many asset classes. Pundits are increasingly calling for a big correction. Fears of overvaluation is also found in the corporate bond market. Credit spreads – the extra margin for default risk – are now notably lower than... Show More
With the consensus slowly but surely shifting to expect rate hikes from the RBA, it's worth thinking about the impact of RBA hiking cycles on asset markets. One asset class we recently looked at is Australian credit spreads - we took a look at a few different drivers, and the... Show More
Given the spread widening that has occurred in credit over the past 18 months, Nikko Asset Management Australia’s credit team has been trying to determine when it makes sense to increase our credit exposure. We have generally been of the view that being risk-averse through the US Federal Reserve’s hiking... Show More
