John Pattullo, Co-Head of Strategic Fixed Income, shares how the Strategic Fixed Income Team continue to carry out their day to day jobs successfully, albeit from home, remaining focused on their client outcomes.

 Key takeaways:

  • The past week has been brutal for risk assets, while traditional hedges for risk, such as US Treasuries and gold, stopped working as investors liquidated portfolios to raise cash.
  • The week was also marked by significant investment grade issuance, at very wide spreads, as companies sought to raise cash; and central bank actions, announcing numerous measures to calm volatility in the markets and ease liquidity conditions.
  • We are excited about the valuation opportunities that are surfacing. However, we continue to monitor the redemption pressure some market participants are experiencing.

 

Notes:

This video was filmed in London on Monday morning, a few hours before the announcement of two new facilities to purchase corporate bonds by the US Federal Reserve at 8:00am New York time.

The indices whose yield and spreads were mentioned by John Pattullo are ICE Bank of America Merrill Lynch US investment grade and high yield bond indices.

Past performance is not a guide to future performance.