While the current recession has severely impacted restaurants in the US, the ‘fast food’ sector has navigated the challenging environment relatively well. The Janus Henderson securitised products and corporate credit teams discuss the reasons why, and the opportunities for bond investors.
Tom Ross, corporate credit manager, discusses conditions in the high yield market, including the default outlook, the importance of monetary and fiscal stimulus and whether high yield can tolerate inflation.
John Pattullo, Co-Head of Strategic Fixed Income, explains how the suppression of volatility by the US Federal Reserve during the Covid crisis has led to the Japanification of the US corporate bond market.
With economies gradually reopening and markets suggesting better times ahead, credit portfolio managers James Briggs and Tim Winstone consider whether investors should be increasing their allocation to investment grade credit.
Nicholas Ware, Portfolio Manager in the Strategic Fixed Income Team, explains why he believes the second half of 2020 will see lower net issuance in corporate bond markets following the dizzying volume of new bond issues in the first half.