HYGV News and Press, FlexShares High Yield Value-Scored Bond Index Fund From 07/19/22

The global economy and financial markets have suffered a dreadful H1 2022, ravaged by a severe commodity shock, strict COVID-19 lockdowns in the world’s second-largest economy, and one of the most aggressive Fed tightening cycles in recent history. H2 looks equally tough. In it...

Based on monetary trends and the early reaction in the economy, we anticipate a slowing growth environment in the U.S., with rising recession risk that depends on the extent of frontloaded Federal Reserve interest rate hikes. Following the initial COVID shock in 2020, investment grade...

When credit conditions tighten and demand slows, corporations can struggle to secure cheap and adequate funding. There’s no approaching maturity wall, where a large share of bond issues matures and issuers are compelled to procure new debt at prevailing rates. When market v...

Investors are grappling with difficult decisions in the face of rising rates, stubborn inflation and slowing growth. Short-duration bonds capture 85% of the broad market yield but have historically exhibited approximately 35% less volatility. In summary, we believe short-duration ...

Despite recent market volatility, our base case outlook for U.S. non-investment grade credit defaults remains constructive. The foundation for a low-default environment has been long in the making. We believe current non-investment grade spreads more than compensate for what conti...

Last quarter, the Asset Allocation Committee adopted an underweight view on global equities and leaned more heavily into cash, commodities and other alternative, diversifying assets. The Committee’s views on real and alternative assets are unchanged this quarter. The Asset ...

Investors see further Fed rate rises, but believe they will start moderating in size after September. Investors continue to see some risks to credit markets, with views that fundamentals will deteriorate and spreads will generally widen somewhat. There is uncertainty around when a...

Debt trading at yields to maturity above 12% has increased by tenfold since January, and is creating compelling opportunities for special situations investors. Secondary trading levels for loans and bonds often reflect underperformance well before rating agency downgrades or defaults ...

Since the Fed first implemented its “zero interest rate policy” in the wake of the financial crisis, investors have been left with a bond market landscape that presented many challenges from an income perspective. With the dynamic duo of inflation and a Fed tightening po...

If inflation and rate increases do not rise above current market expectations, however, there is a case for longer-duration instruments. Asset allocation models are well documented across the investment universe, and portfolio diversification is a widely accepted principle. Histor...