Fixed Income

JP Morgan to launch fixed income ETFs in Europe; includes smart beta play

Jan 26th, 2018 | By
Bryon Lake, international head of ETFs, JP Morgan Asset Management.

JP Morgan has announced plans to launch a trio of bond ETFs in Europe. The ETFs will provide exposure to ultra-short government and corporate bonds, short-duration European government bonds, and a smart beta play on EM sovereign bonds. Bryon Lake, international head of ETFs at JP Morgan Asset Management, said: “We’re focused on launching products which will serve specific investor needs. Sophisticated investors, across Europe, are saying they want to see innovation in the fixed income arena whether that be our beta builder, smart beta and/or active capabilities.”

EM local currency sovereign bonds: five prerequisites for a strong 2018

Jan 25th, 2018 | By
VanEck: China bond appeal grows with possible index inclusion

By Fran Rodilosso, head of fixed income ETF portfolio management at VanEck.

Emerging markets local currency sovereign bonds delivered strong returns in 2017, which have primarily been driven by local interest rates rather than currency effects. With generally stable or improving fundamentals in emerging markets and global growth, in our view, local currency bonds will receive support against higher interest rates in developed markets.

Using leveraged short ETPs to hedge fixed income amid ECB QE tapering

Jan 25th, 2018 | By
Viktor Nossek, director of research at WisdomTree in Europe.

By Viktor Nossek, director of research at WisdomTree in Europe.

Leveraged short ETPs that track Bunds can serve as capital-efficient hedging tools for investors seeking to protect their European high-grade bond portfolios in rising interest rate scenarios. The usefulness of such ETPs is particularly relevant in the current environment, with the European Central Bank (ECB) recently announcing that it will begin tapering its quantitative easing (QE) programme.

Lyxor cross-lists green bond ETF on Deutsche Börse

Jan 24th, 2018 | By
Lyxor cross-lists EUR-hedged green bond ETF on Deutsche Börse

Lyxor has cross-listed the Lyxor Green Bond Monthly Hedged UCITS ETF on Deutsche Börse, offering access to the performance of euro- and dollar-denominated ‘green bonds’, as defined by the Climate Bond Initiative, issued by investment-grade companies. The ETF, which is linked to the Solactive Green Bond EUR USD IG Index, incorporates an in-built currency hedge, hedging the US dollar-denominated portion of the portfolio back to the euro.

PIMCO: Economic growth masks eurozone’s underlying fragility

Jan 19th, 2018 | By
Nicola Mai, portfolio manager, sovereign credit analyst at PIMCO.

By Nicola Mai, portfolio manager, sovereign credit analyst at PIMCO.
While things look good over the cyclical horizon, investors shouldn’t be complacent about the long-term outlook, as the region is still far from resolving its existential challenges.

S&P 500 Bond Index sees record issuance in 2017

Jan 17th, 2018 | By
Jason Giordano, director of fixed income at S&P Dow Jones Indices.

S&P 500 companies issued $775 billion in bonds during 2017, the sixth consecutive year of record US corporate bond issuance, according to S&P Dow Jones Indices. Jason Giordano, director of fixed income at S&P DJI, said the rise in issuance was reflective of companies continuing to take advantage of the accommodative environment created by low interest rates and strong investor demand.

Deutsche launches three new USD high-yield bond ETFs on NYSE

Jan 15th, 2018 | By
Deutsche lowers fees on Xtrackers international equity ETF suite

Deutsche Asset Management (Deutsche AM) has launched three new USD high-yield bond ETFs on the NYSE Arca, each offering investors different credit and interest-rate risk exposures. Fiona Bassett, Deutsche AM’s Head of Passive Asset Management, Americas, stated “Our expanded Xtrackers suite of high yield bond ETFs uses rules-based strategies to provide exposure to different levels of credit and interest rate risk, allowing investors to manage credit and duration exposure for a more customized solution.”

Deutsche launches USD short-duration high-yield bond ETF

Jan 15th, 2018 | By
Deutsche launches US short duration high yield bond ETF

Deutsche Asset Management has expanded its range of US-listed ETFs with the launch of the Xtrackers Short Duration High Yield Bond ETF (SHYL US), targeting short-term, US dollar-denominated corporate debt with credit ratings below investment grade.

Invesco cross-lists three PowerShares fixed income ETFs on Borsa Italiana

Jan 12th, 2018 | By
Invesco cross-lists three Powershares fixed income ETFs on SIX

Invesco has cross-listed three PowerShares fixed income ETFs onto Borsa Italiana, tradable in euros. The ETFs, which track Bloomberg Barclays indices, offer exposure to dollar-denominated corporate bonds, euro-denominated corporate bonds and dollar-denominated emerging market sovereign bonds.

Solactive expands suite of USD high-yield corporate bond indices

Jan 12th, 2018 | By
Steffen Scheuble, CEO of Solactive

Index provider Solactive has expanded its USD high-yield bond suite with three new indices, including a shorter duration play and a pair targeting different levels of systematic risk. Steffen Scheuble, CEO of Solactive, said: “By expanding the Solactive USD High Yield Corporates Index range, we explore alternative strategies that will allow market participants to easily customize their risk exposure within this segment”.