Landmark Paris Court of Appeal Decision on Creditors’ Rights
Since the Paris Commercial Court opened safeguard proceedings towards Heart of La Defense (HOLD) and Dame Luxembourg (DAME) in November 2008, lenders have become more wary. Here, we examine in detail...
View ArticleThe advantages of precautionary attachment in the UAE
In this briefing, UAE specialists Habib Al Mulla explain how precautionary attachment differs to executive attachment, how it is governed under UAE Civil Procedures Law and how it is one of the best...
View ArticleThe Future of Credit
In this paper, Allen and Overy asked their market leading regulatory and finance lawyers to assess whether new regulation was having a positive, neutral or negative impact on the provision of credit.
View ArticleSpring Global Strategy Outlook: The Return of Alpha
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...
View ArticleRussia: Notes from the road
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...
View ArticleBAML recognises unstoppable globalisation of credit market in landmark decision
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...
View ArticleRethink your defence amid low yields, rising correlations
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...
View ArticleFour causes for concern in the tech sector
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...
View ArticleSpectrum: Extracting returns amid lower-for-longer energy prices
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...
View ArticleWhy picking the right security is as important as choosing the company.
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...
View ArticleGold: still lustrous amid the commodities crash
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...
View ArticleLetter from America
Earlier this month, in what is fast becoming an annual fixture, I was in the US for the JP Morgan Global High Yield and Leveraged Finance Conference, says Fraser Lundie, Co-head and Senior Portfolio...
View ArticleUS Homebuilders on shaky ground
Low mortgage rates and strong demand should create a positive outlook for homebuilders. However, specific market and regional risks are undermining the credit prospects for these companies, says Andrey...
View ArticleThe ECB plunges into European credit through the CSPP
When the European Central Bank (ECB) announced its plans to launch the Corporate Securities Purchase Program (CSPP), the credit-investor equivalent of Andre the Giant belly-flopped right into the...
View ArticleWhy are recovery rates falling when defaults have stabilised?
Conventional wisdom suggests that a fall in recovery rates should accompany a surge in defaults. However, this has not been the case in the last year, suggesting the current climate for low-quality...
View ArticleThe case for credit
While retail investors’ options in fixed income have grown in recent years, the space continues to evolve. The rise of strategic bond, multi-asset and absolute return funds, alongside traditional...
View ArticleAuto parts: three consumer trends driving the industry
Ever since the first internal-combustion vehicle rolled off Karl Benz’s production line 130 years ago, the motor car has claimed a place in popular culture that is more than the sum of its parts – and...
View ArticleEmerging market debt: the good, the bad and the ugly
Vikram Aggarwal, a credit analyst covering emerging markets within Jupiter’s Fixed Interest & Multi Asset team, provides a deep-dive analysis of the emerging markets debt sector, outlining the...
View ArticleHermes Multi Strategy Credit posts three years of strong risk-adjusted returns
Fraser Lundie, Co-Head of Credit at Hermes Investment Management, explains how the 16.8% return of Hermes Multi Strategy Credit since its May 2013 inception to 31 May 2016 has been achieved by...
View ArticleOi S.A. proves geographic silos cannot work in a globalised world
One of the key reasons people cite when allocating to a specific geography in the global high yield market is avoiding exposure to unwanted sovereign risk. We have long held the view that this is...
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