Tag: bond yields

The vidcast dives into the key considerations investors should think about when looking to identify quality businesses. We highlight some important metrics that can be used to measure the strength of a company's performance, as well as some leadership considerations to take into account.

2022 was an extremely tough year for global fixed income assets, with long bond yields rising sharply in developed markets resulting in one of the worst years for bond markets in almost a century. Emerging market bonds suffered both from a correlated move higher in yields in line with developed market bonds, but also from heightened volatility.

With South Africa being added to the Financial Action Task Force's (FATF) grey list, we do not believe markets will continue to react over negatively due to the greylisting, especially since a lot of this unwelcome news has already been priced in by markets.

A year ago, reality started sinking in that the new coronavirus from Wuhan would not be contained to China. No fewer than 25 countries had confirmed cases, and the first deaths outside China were being reported. On 11 February 2020, the disease caused by the new coronavirus was named COVID-19.

The macro environment has been deteriorating over the past few years and this has been exacerbated by the COVID-19 crisis. As a result, the credit market has been characterised by deteriorating credit quality and credit spreads. The key credit cycle indicators that we look at confirms this market phenomena.