Search results

As COVID-19 wreaks havoc on lived and financial markets, we check in with our veteran High Yield Fixed Income team to learn which industries are being most affected, where there are opportunities and why High Yield may be considered 'cheap' right now.

Learn about investing in fixed income today. First Sentier Investors' on-the-ground teams share investment ideas uncovered in developed & emerging markets.

First State Investments’ High Yield Group recently passed the 3-year performance anniversary. Our current High Yield Strategies are long-only corporate credit, with no leverage and no derivatives.

Following the economic and market malaise in February and March, high yield and risk assets generally experienced five straight months of strong performance, only to pull back in September. With a coordinated push from central banks in the form of zero rates and $3 trillion in QE the markets rebounded sharply from their lows in March with the equity markets, as measured by the S&P 500, posting a second quarter return of +20.54%, followed by a +8.93% return in the third quarter. The renewed confidence in the US economy because of Fed stimulus and general improved understanding and combating of COVID-19 helped to propel risk assets higher. In September that sentiment reversed course. Growing concerns surrounding a second COVID-19 wave in the US combined with the upcoming flu season, questions about when another US stimulus deal is approved, and the uncertainty around the US election outcome all added to uncertainty that weighed on the markets as the third quarter closed.

The first quarter was extreme in the scale and magnitude of financial market volatility, particularly over the last six weeks of 1Q’20. A dramatic, global economic slowdown resulted from the unprecedented global quarantine of entire populations, in most developed countries, in response to the COVID-19 disease, which is widely deemed a deadly, viral pandemic.

The COVID-19 pandemic had a dramatic effect on the market in early 2020. Within days of US stocks hitting an all-time high in February, US equity indices began a one-month, 30-40% sell-off, US high grade corporate spreads tripled, and high yield spreads briefly pierced +1000 bp spread-to-worst (STW). In response, the Fed slashed rates to zero, and the Fed’s latest $3 trillion of Quantitative Easing (QE) resulted in an adrenalin shot increase in Fed Credit of $2.5 trillion. This rush of new money led US stocks to recoup most of their losses, or in the case of the Nasdaq 100, hit new highs. However, the global economy remains at a point of heightened/unchartered economic uncertainty. COVID-19 remains a significant unknown, social unrest and political uncertainty are high and the restart of the global economy a wholly new phenomenon.

Check the latest First Sentier Investors fund price and fund performance, keep track of funds performance and trends to help investment selections.

The U.S. High Yield market, as represented by the ICE BofAML US High Yield Constrained Index (HUC0) posted a +1.22% total return during Q3’19, on the heels of the particularly strong, +10.16% total return of 1H’19.

In this Q2 2019 Quarterly Update we review the increasingly dovish attitudes adopted by central banks and the “whatever it takes” commitment to monetary stimulus, the general high yield market, our portfolio positioning and the top contributors and detractors from our five High Yield Fixed Income Strategies.

The U.S. High Yield market, as represented by the ICE BofAML US High Yield Constrained Index (HUC0) posted a +2.6% Q4’19 total return (‘TR’), and a +14.4% total return for the full-year 2019. The strong 2019 represented the fourth best annual return since the post-GFC recovery in 2009; modestly trailing the +17.5%, +15.6% and +15.1% total returns of 2016, 2012 and 2010, respectively.

As it turns out, the first half of 2018 was challenging for many financial markets in general, and many fixed income markets in particular.

In general, global corporate bonds posted positive total returns during the third quarter of 2018.

In general, global corporate bonds posted positive total returns during the third quarter of 2018.

In general, global corporate bonds posted positive total returns during the third quarter of 2018.

Curious? Come join us for a US election roundtable and hear our New York based Direct Infrastructure and High Yield Teams share their insights about the upcoming election and how it could impact healthcare, energy, global trade and more. Presenting from our Direct Infrastructure team is John Ma, Head and Director of Investments in North America of Unlisted Infrastructure and from our High Yield Team is Jason Epstein, the Co-Head of High Yield.

Head of Asian Fixed Income, Nigel Foo provides an outlook into 2025 for the strategy.

Concentration in equity markets has reached unprecedented levels, particularly in the United States. A select few mega-cap stocks, colloquially referred to as the "Magnificent 7," now dominate market indices, reflecting a convergence of technological innovation, speculative enthusiasm, and the allure of generative AI.

Consider listing property as part of real asset portfolios for long-term returns, liquidity, and inflationary hedge. This article explores these factors and emphasizes the investment potential of listed property as a complement to real asset portfolios.

With Initial Public Offerings in India consistently oversubscribed and valuations peaking, the team discuss their five largest holdings and why now is not the time to sell.

The outlook for the global economy and financial markets looks more uncertain today than it has for a long time. Both interest rates and inflation have risen sharply. There is a growing consensus that much of the world will shortly be experiencing slowing economic growth. Understandably, investors are asking what their options are. With a wide array of asset classes available, which are best placed to offer investors resilience in the current environment, but also sustainable investment opportunities?

Global city populations continue to grow, driven by urbanisation. The provision of housing for growing populations is a major challenge for many countries and cities. Adequate housing is a factor that influences a city’s mobility of labour, social wellbeing and commerce levels. Government housing policies are typically viewed holistically with policies covering social, private and rental housing. New supply is not always efficient and can be problematic particularly in densely populated cities.

Global listed infrastructure underperformed in 2023 owing to rising interest rates and a shift away from defensive assets. Relative valuations are now at compelling levels. Infrastructure assets are expected to see earnings growth in 2024 and beyond, aided by structural growth drivers.