LQDH News and Press, iShares Interest Rate Hedged Corporate Bond From 07/25/22

Market views of Fed rate hikes have swung sharply. We see more volatility ahead as long as central banks think they can curb inflation without crushing growth. Yields spiked before easing after the ECB raised rates by 0.5% last week. We expect it to pause hikes before the Fed as the e...

The current shape of the yield curve really does look like the bond market expects a recession to show up in the not-too-distant future. The compression in longer-dated maturities has been having a mostly positive effect on the stock market this week, particularly the growth-oriented ...

Despite increased market volatility in 2022, the investment grade credit market is healthy and functioning. Even after adjusting for the growth of the corporate bond market, trading volumes in 2022 are only slightly below the average for the prior five years. While new issue conce...

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...

The investment community experienced weekly capital inflows of $8.1B to the fund market which includes both conventional funds and ETFs for the week ending July 13th. However, equity ETFs observed their fifth straight week of outflows while fixed income ETFs attracted capital for their ...

Investors were overall net purchasers of fund assets (including those of conventional funds and ETFs) for the second consecutive week, injecting a net $8.1 billion for the Refinitiv Lipper fund flows week ended Wednesday, July 13. For the flows week, the S&P/LSTA Leverage Loan Ind...

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 ...

Strong economic growth in 2021 and a healthy demand environment entering 2022 served as catalysts for companies to allocate high cash balances toward capital expenditures, share repurchases, and M&A. Share repurchases increased considerably, given significant equity drawdowns this...

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...