A Cautionary Misalignment in High Yield
October 18, 2022 — While low liquidity in the cash bond index has caused spreads to stay tighter than fundamentals would suggest, the large amount of CDX purchases by speculators and hedgers alike has pushed CDX spreads much wider in 2022. This leads us to two conclusions: 1) Cash spreads will likely need to go much wider soon, and 2) When credit capitulation does occur, the cash index will be rife with credits that trade wide of where their default risk implied value sits based on CDS, a bargain hunter’s dream.
Fixed Income Perspectives — October 2022
October 17, 2022 -- In this presentation, Sage answers the 4 big questions (outlook for macroeconomic growth, Fed policy, valuations, and investor sentiment) and . . .
Fixed Income 3Q22 Market Review & Outlook
October 5, 2022 -- While most of the story has been negative for fixed income investors in 2022, higher yield levels and a Fed approaching . . .
How Much Cushion Does Fixed Income Provide?
September 21, 2022 -- The long-awaited September FOMC statement and summary of economic projections arrived, and it met the expectation coming with a “hawkish” 75 basis point ra