1519 briefings from 400 companies
Within the credit world, there is a sense that if you get the company right and avoid default you will have done your job as a bond investor. While this is a neat premise, we believe it is a gross oversimplification of the asset class. By only focusing on the quality of a company you have only dealt
Despite weaker Chinese appetite for raw materials, investors aiming to maintain diversified portfolios with an exposure to commodities should consider gold producers, which benefit from favourable demand dynamics, the safe-haven status of the metal and attractive valuations, says Andrey Kuznetsov,
The slump in oil prices shows no sign of abating, as OPEC continues to maintain production levels. Energy companies have been forced to adapt – some radically – particularly those in regions where the marginal cost of production is much higher. Some sectors of the industry will find it difficult to
Aided by a Windows XP refresh cycle and solid growth in smartphone sales in 2014, the technology sector outperformed the US High Yield index last year. Recent developments, however, make us more cautious, says Audra Stundziaite, Analyst for Hermes Credit.
In the last two bear markets, duration has provided a valuable source of downside protection. Now, falling yields and the rising correlation between equities and bonds should compel investors to seek alternative defences, says Fraser Lundie, Co-Head of Credit and Senior Portfolio Manager.
Following a strong rally in hard-currency Russian corporate debt throughout the second quarter, Mitch Reznick, Co-Head of Hermes Credit, visited Moscow to gain an insight into the nation’s economic troubles and assess whether the market is being too optimistic.
Hermes Credit has welcomed the decision from Bank of America Merrill Lynch to retain emerging market issuers in BAML’s benchmark Global High Yield Index. Fraser Lundie and Mitch Reznick, co-heads of Hermes Credit, believe emerging markets play a fundamental role in global high yield investing.
Alpha to trump beta in 2013: After four years where beta dominated, we believe alpha will make up a bigger slice of the (smaller) returns pie in 2013. Asset classes, regions and countries will be less correlated, in our view, with lower systemic risk and higher company-specific risk.
Published:08 April 2013