Fixed Income
CIO WEEKLY PERSPECTIVES
Inflation is Hot—and Could Stay Hot
Autumn and winter should bring respite from the northern hemisphere’s punishing summer heatwave, but we don’t think they will ease the inflation temperature.
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Fixed Income
Fixed Income Investment Outlook 3Q 2022
Building Value as Conditions Tighten
We anticipate resilient fundamentals, but also volatility tied to inflation and higher short rates.
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Fixed Income
NB Blog
Thoughts from our fixed income investment professionals on the evolving state of global markets and the macro economy.
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Fixed Income
PLATFORM OVERVIEW
The comprehensive and global nature of our platform and investment process enables our team to offer a variety of focused and multi-sector solutions to meet unique investor needs.
INVESTMENT GRADE
NON-INVESTMENT GRADE
EMERGING MARKETS
MUNICIPALS
MULTI-SECTOR
PRIVATE CREDIT
OUR PHILOSOPHY
Bond markets often fail to price in complexity and cross-currents. We believe a value-oriented approach based on process-led investing, a commitment to research and an integrated global approach can capitalize on these market inefficiencies
Process-Led Investing
Our process combines macro inputs, relative value analysis and fundamental research to drive informed decision-making and consistent investment performance
Commitment to Research
Fundamental research that integrates ESG considerations allows for a differentiated understanding of potential value and, more importantly, the risk of loss
Integrated Global Platform
Continuous collaboration is at the center of our effort as it allows for the best of investment insights globally to be reflected in portfolios
OUR PLATFORM
$186bn
of assets under management across an integrated global platform comprised of 192 investment professionals, including 75 research analysts
INVESTMENT GRADE
NON-INVESTMENT GRADE
EMERGING MARKETS
MUNICIPALS
MULTI-SECTOR
PRIVATE CREDIT
40 YEARS OF MANAGING FIXED INCOME ASSETS
ESG, SUSTAINABLE & IMPACT1
Material environmental, social and governance factors are an important driver of long-term investment returns from both an opportunity and a risk-mitigation perspective
ESG-Integrated
Our public fixed income strategies evaluate ESG factors in the fundamental credit research process
Proprietary Views
2,500+ Systematically developed NB ESG Quotient™ ratings for credit issuers based on financially material factors
Customized ESG Solutions
Innovative implementation to address a range of ESG goals, including net zero in multi-sector credit
ACTIVE ENGAGEMENT2
We believe close engagement with management on ESG issues is an integral part of managing risk in our role as direct providers of new capital
1,400+
engagements with fixed income issuers
50%
on environmental issues
49%
on social issues
76%
on governance issues
Thoughts from our fixed income investment professionals on the evolving state of global markets and the macro economy
INSIGHTS
FIXED INCOME INVESTMENT OUTLOOK
July 07, 2022
Building Value as Conditions Tighten
We anticipate resilient fundamentals, but also volatility tied to inflation and higher short rates.
White Paper
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April 23, 2021
Transitioning to Net-Zero Investing
Support for the goal of net-zero emissions gained strong momentum during 2020. What does this imply for market participants, and what initial steps can asset owners and managers take on this daunting path?
Inflation is Hot—and Could Stay Hot
Autumn and winter should bring respite from the northern hemisphere’s punishing summer heatwave, but we don’t think they will ease the inflation temperature.
Into the Inflationary Slowdown
As inflation persists and recession risks rise, our Asset Allocation Committee sees more yield potential in fixed income and favors commodities for ongoing inflation exposure, but remains cautious in equities.
The ECB’s Trilemma
Are we seeing the start of another eurozone crisis, or can the ECB fashion an effective tool to manage volatile southern European bond spreads?
The Two-Way Market Persists
The search for value is on, particularly in short to medium duration.
Smoothing Long-Term ESG Transition
Our Non-Investment Grade Credit team explores key issues and trends facing issuers.
Alternative Data: Workforce Recovery and the Great Resignation
More displaced workers seem ready to come back into the labor force, but employers may need to watch their highly compensated “stayers.”
How to Keep Energy Going and Going…
(21:20) Energy markets have been dealing with the implications of ongoing inflation, ESG and geopolitical factors that have changed the investment landscape globally, so what’s next for the sector?
EMD as a Hedge Against Inflation
Inflation concerns have caused investors to search for income with lower duration, and we believe Asia high yield delivers on this front.
Transitioning to Net-Zero in Credit Portfolios
From defining and setting interim targets from day one, to the critical role of bondholder engagement, we reflect on the process of putting together a major net-zero credit portfolio.
Short Duration High Yield: Replacing Rates Risk With Credit Risk
Short-duration high yield could be an under-explored option for investors who need current income to meet short-term liabilities, but cannot afford the interest rate risk that would accompany a search for yield in longer-dated bonds.
Rethinking the Credit Liquidity Continuum
As private credit markets have expanded, matured and democratized, eligible investors can now, in a cost-effective and operationally efficient manner, combine liquid and less-liquid credit assets in one portfolio. This allows investors to increase yield profile and potentially reduce volatility and correlation.
Regime Change
While we do not anticipate a recession over the next 12 months, the prospect of slowing growth and stubborn inflation has led us to downgrade our view on equities, and prepare for a new regime in which real assets could generally perform better than financial assets such as stocks and bonds.
Understanding Short Duration for the Long Run
(21:01) The current High Yield market seems to display the characteristics that could make it an interesting investment opportunity, but does it answer an investor’s question of, will I get paid back?
How to Get the Most From Private Placement Debt
Private Placements can offer fixed income investments with enhanced diversification, risk-adjusted yield and downside mitigation, and as demand grows, we believe investors could benefit from an independent route into the market that is better aligned with their needs.
Fixed Income Amid Inflation
What does the current inflationary environment mean for multi-sector fixed income portfolios?
Senior Floating Rate Loans: A Low-Cost Hedge Against Inflation
Where to find yield without duration when inflation is elevated.
Uninvestable Russia
We survey the impact on worldwide fixed income markets of the devastation in Ukraine and the sanctions against Russia, and send our thoughts to those in the heart of the conflict.
Multi Sector Fixed Income Team Outlook
(7:13) Jaina Varsani and Ashok Bhatia discuss the fixed income outlook for 2022 and update on the positioning of our multi-sector fixed income funds.
Emerging Sovereigns and Sustainability
Global sustainability cannot be achieved without sustainability in the world’s poorer countries—so how can we address the challenges of sustainable investing in emerging markets sovereigns?
How Deep Is EUR Love?
Thursday’s 7.5% U.S. inflation print reintroduced some volatility, but we still think the euro is building a base for a long-term relationship with its admirers.
Seagoing Shipping Rates and Port Activity
Shipping costs have exploded due to a complex list of factors that are unlikely to subside quickly.
The Future State of Real Estate Investing
(17:33) Real estate, both in the public and private markets, can act as a diversifier during times of uncertainty. But what are the other factors to consider within this asset class?
Central Banks Emerge From Hibernation
Rates volatility reflects a change in the inflation narrative, and could accelerate central bank policy adjustments.
Bring On the Transition
A period of changing policy could bring new opportunities to add to yields in the municipal market.
Sustainability in Emerging Markets Debt
Ignoring sustainability in emerging markets debt is, for want of a better term, no longer sustainable.
El Salvador and Bitcoin
Establishing the cryptocurrency as legal tender is a risky move, but also carries some potential benefits.
Public/Private Investing: Fixed Income at a Crossroads
Drawing on multiple fixed income asset classes can help investors navigate varied market environments.
Evergrande Heads for Default
We believe systematic risk beyond the Chinese property market remains limited.
CAT Bonds: Finding Reassurance in Reinsurance
(20:12) With flooding, wildfires and hurricanes continuing to wreak havoc around the globe, how might investors want to consider these natural catastrophe risks within their portfolios?
ECB Policy and Bunds Are Set to Move
Ahead of the key European Central Bank policy meeting on September 9, we offer our views on what will likely change, what may not, and what it could mean for the Bund yield.
EM Corporate High Yield 2021 Default Outlook – Midyear Review
We expect a marginal uptick in defaults from our original estimates, given rising China corporate default risk offset by an improving outlook for much of the emerging markets.
Private Debt, Capital Solutions and the Early-Cycle/Later-Cycle Paradox
Early-cycle growth prospects should incentivize investment, but later-cycle valuations can give pause: Private debt and capital solutions could resolve the paradox.
Developing a Roadmap for ESG Performance
Neuberger Berman’s Engagement Series presents insights and case studies on our dialogue with companies, government entities and other securities issuers.
Bond Yields Under a More Hawkish Fed
A more hawkish Fed may not lift Treasury or investment grade credit yields, and that raises important questions for fixed income investors and asset allocators.
Are Central Banks Risking Their Independence?
Monetary policy institutions may be straining their credibility, which increases the likelihood of political encroachment and threatens our hard-earned victory over volatile consumer prices.
Non-IG News: An Update on the Cruise Industry
(6:41) In this video, our Senior Research Analyst, Adam Howaniec, provides an update on the Non-Investment Grade Cruise Industry.
Public vs. Private Credit: Competitors or Allies?
(19:50) Over the course of more than a decade, private debt has been in high investor demand. But how does private debt come into play alongside public fixed income markets?
The State of BBBs: Here to Stay
A significant, if misunderstood, market segment continues to offer attractive investment opportunity.
A Crack in China’s Debt Foundations
Bonds issued by China’s biggest distressed debt asset manager just lost 40% of their value—how concerned should we be?
Senior Floating Rate Loans: Opportunity as Rates Rise
Where to find yield without duration when inflation expectations and nominal long rates are on the rise.
Non-IG News: Leisure & Entertainment Sector Update
(3:27) Non-IG Leisure and Entertainment Sectors Update
Early-Cycle Conditions Still Support Credit
Why the run-up in rates has troubled equity markets more than credit, and why we think that is poised to continue.
Time to Get Strategic: Emerging Markets Debt as a Core Insurance Portfolio Allocation
We believe emerging markets debt warrants a strategic allocation by insurance companies—but while our own conversations indicate change is coming, holdings analysis suggests insurers are not yet taking advantage of the opportunity.
Toward a Steeper U.S. Yield Curve
A potentially substantial growth and inflation recovery from the second half of this year could put pressure under long-dated yields, and eventually the Fed.
Rates Markets Are Normalizing
It is far too early for taper talk, in our view, but the bias of risk is still toward higher rates to come.
Non-IG News: Earnings Trends in Non-IG Credit
(3:47) During the early stages of the pandemic, most market participants and company managements were very concerned about the impact from mandated shutdowns and shelter-in-place orders on company revenues and bottom line results.
Market Conditions and Opportunities in Private Credit
(4:48) Matthew Bird, Managing Director for our Private Debt team, provides an update on how the Private Debt markets are managing through the COVID-19 crisis, how the team has been managing portfolios since March, and what investors could anticipate in the months ahead.
Perspective on Private Credit
(4:22) Listen to David Lyon as he discusses the current dislocation in the credit markets and the types of investment opportunities that may emerge as a result.
ESG Fixed Income Engagement Report
Our engagement process, key themes and observations, data summarizing our engagement activities and relevant case studies.
Emerging Markets Debt: A Soft Patch for Hard Currency
This year’s sell-off opens an opportunity to make strategic allocations at attractive valuations.
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