High Yield Insights
In these Insight articles, the senior portfolio managers at the Neuberger Berman Non-Investment Grade Team discuss relevant and current topics in the high yield space.
New in 2021: Sustainability-Linked European Leveraged Finance
We view ESG-linked coupon adjustments as an encouraging development, but ultimately we think capital markets and independent analysis are the best judge as to whether a company is a leader or laggard in ESG.
Record Non-IG New Issuance in 1Q21
Despite a record surge in issuance tied to refinancing demand, our level of selectivity has held steady.
Real Yields, Inflation Breakevens and Risk Assets: The Changing Environment
Investors need to position themselves for a different and more complex environment.
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.
Opportunities in the Distressed World Persist Despite Broader Markets Recovery
Despite a recovery in the broader markets, we see an array of opportunities as many companies struggle with increased debt obligations on over-levered balance sheets.
Non-IG News: Leisure & Entertainment Sector Update
(3:27) Non-IG Leisure and Entertainment Sectors Update
Dynamic Currency Hedging Update
Many drivers of hedging decisions have changed during the pandemic; investors should revisit their hedging policies to ensure they are set up for today’s environment.
The Workhorse for 5G
(20:08) With society continuing to rapidly rely more and more on the Internet of Things, telecom companies have needed to find ways to stay competitive. But what makes that intriguing for investors?
Growth in Non-Investment Grade Sustainable Issuance: Good for Companies, Investors and Broader Stakeholders
Emerging structures should help enhance the alignment of interests around ESG goals.
Where to Get Yield Without Duration Risk
In our view, loans are likely to be an increasingly important source of diversification and a low-cost hedge against inflation.
Inflation Risk Reemerges
Even as central banks hold in place, recovery amid currently easy monetary policy could bring renewed pricing pressures.
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.
California Wildfires and Credit Risk
Widespread destruction has reinforced the value of climate assessment in credit analysis.
Non-IG News: U.S. Elections and Implications for the Energy Sector
(5:41) Robert Gephardt discusses how the Biden administration could impact the Energy sector and what it means for Non-Investment Grade Energy, in particular.
Non-IG News: Record High Yield New Issuance in a Pandemic?
(4:47) Despite the COVID-19 pandemic and a significant contraction in global GDP, the High Yield Market has seen record levels of new issuance in recent months.
Searching for Relative Value
Growth questions and potential inflation are among the issues fixed income investors face in seeking opportunity in the current environment.
Flexibility and Fundamentals
The new environment of zero rates and higher credit market volatility calls for a new approach to durable income investing—one that can go anywhere, but remains anchored in bottom-up conviction.
Great Expectations in Credit: Now What Comes Next?
(19:16) Despite volatility since March, the credit markets have in fact seen opportunities, as a result of the COVID-19 crisis. So now, what’s next for investors?
The Changing Path to Credit Opportunities
Sector and security selection will likely be the focus of potential fixed income returns from here.
Building the Liquidity Bridge
Unprecedented liquidity from both central banks and the capital markets is helping non-investment grade borrowers survive the COVID-19 crisis, and substantially lowering estimated default rates.
Spotlight on Sustainability: Evolving Engagement in ESG and Non-Investment Grade Credit
In February 2020, Neuberger Berman sat with high yield bond issuers to discuss ESG engagement in the Non-Investment Grade credit market.
Special Update: At the Peak of the Curve
After an apparently strong and rapid equity market rally in April, Neuberger Berman’s AAC reconvenes to reassess its views.
Opportunity in Credit
The Global Fixed Income team sees potential in credit spreads, with an initial focus on quality.
Credit Dynamics
(19:04) Senior credit professionals Ashok Bhatia, Deputy CIO in Fixed Income, David Brown, Co-Head of Global Investment Grade Fixed Income, Susan Kasser, Co-Head of Private Credit and Joseph Lynch, Global Co-Head of Non-Investment Grade Credit discuss the market implications and potential opportunities arising from the recent unusual market dynamics.
CLO Market Update
(6:29) Pim van Schie, Neuberger Berman Non-Investment Grade Credit Portfolio Manager, discusses market activity for CLOs over the past month and the team’s approach to navigating the risks associated with the sell-off in the non-investment grade fixed income market.
Contagion
Should investors consider loading up on the riskiest assets when markets begin to stabilize? After a valuation adjustment of this magnitude, that probably isn’t necessary. The markets are unlikely to run away from us.
High Yield Market Update: Volatility Persists
(6:03) Christopher Kocinski, Neuberger Berman U.S. High Yield Senior Portfolio Manager, discusses the factors that have contributed to the volatility in the non-investment grade credit market and how his team has adjusted portfolios as spreads have widened.
Navigating Volatility in Global Non-Investment Grade Credit Markets
High yield spreads and loan prices appear attractive for long-term investors, in our view.
Global High Yield Market Update
(2:58) In this video update from Senior Portfolio Manager, Vivek Bommi, we review conditions across global non-investment grade bond markets and offer our outlook for the asset class.
High Yield Market Update
(5:31) Joe Lind, Neuberger Berman High Yield Portfolio Manager, discusses factors driving the high yield market and strategy positioning during an uncertain time.
High Drama in High Yield
Coronavirus and the OPEC price war combine for a one-two punch to high yield markets.
Update on Global Non-Investment Grade Credit Markets
We unpack the short-term and long-term, transitory and permanent impacts of recent news on the high yield and loan markets.
Stable Growth, Policy in Transition
Perspective on growth, interest rates, and opportunities and issues across the fixed income landscape.
CLOs and Late Cycle Credit Investing
(15:31) How should investors be thinking about the loan market as the bifurcation in credit continues?
Risks Rebalanced
A less cautious stance, with upgrades for pro-cyclical sectors and regions—including non-U.S. equity markets, U.S. credit, and emerging markets debt and equity.
Fixed Income Investment Outlook 4Q2019: Recession Angst vs. Recession Realities
Though some economies are already seeing weakness, confidence shocks elsewhere could undermine solid fundamentals.
Engaging Fixed Income Issuers on ESG Topics
Jonathan Bailey, Head of ESG Investing, sits down with members of our Developed Market Corporate Credit team to discuss why they believe that ESG factors have a meaningful impact on credit quality and therefore are an important component of their credit research process.
Fixed Income Investment Outlook 3Q2019: Time to Dust Off the Playbook for Easing?
10 years since the Fed’s last rate cuts; we suspect many investors will have forgotten how powerful a Fed tailwind can be for markets.
An Insurers’ Guide to Below-Investment Grade Exposure: The Platform Approach
Exploring the advantages of a broad platform approach to fixed income and credit for insurance company investors.
Combining Public and Private Debt: Considerations for Investors
We believe there are a number of good reasons fixed income investors should consider a one-portfolio public/private debt solution.
ESG Fixed Income Engagement Report
Our engagement process, key themes and observations, data summarizing our engagement activities and relevant case studies.
Are You a Lightning Rod or a Seismograph?
The current sweet spot in high yield may be short-dated bonds rather than floating-rate loans.
ESG Engagement for Fixed Income Investors: Managing Risks, Enhancing Returns
Chris Kocinski, Director of Non-Investment Grade Credit Research, joined a panel of leading institutions at the PRI’s Responsible Investment in Fixed Income conference in San Francisco to share his perspective on how fixed income investors can effectively engage with issuers, as well as his outlook for the evolution of ESG integration in non-investment grade credit.
Non-Investment Grade Credit: Engaging in ESG
Credit investors can influence change through ESG engagement.
Side FX
Are credit investors comparing “like with like” when they compare U.S. and European yields?