Insight Investment’s Post

Which offers better relative value: global corporate bonds or global credit? The latter currently looks appealing as the yield spread of global corporates over credit has narrowed towards the lower end of its historical range. Learn more about the advantages of global credit here: https://bit.ly/3W1tmS2 Capital at risk. For professional investors only.

Which offers better relative value: global corporate bonds or global credit? The latter currently looks appealing as the yield spread of global corporates over credit has narrowed towards the lower end of its historical range. Learn more about the advantages of global credit here: https://bit.ly/3W1tmS2 Capital at risk. For professional investors only.

What is the difference between global credit and global corporate bond indices? Global credit includes issuers outside of the corporate world that can mean a better overall credit profile. Global credit has also seen broadly similar returns to global corporates over the long term, but with less volatility. Read more here: https://bit.ly/3W1tmS2 Capital at risk. For professional investors only.

Global credit or global corporates? Global credit is a larger universe and offers a wider opportunity set. It can also provide a stronger credit profile and so potentially higher risk-adjusted returns. Learn more about the differences between these two markets here: https://bit.ly/3W1tmS2 Capital at risk. For professional investors only.

𝐑𝐞𝐠𝐮𝐥𝐚𝐭𝐢𝐨𝐧 𝐚𝐧𝐝 𝐭𝐫𝐚𝐧𝐬𝐩𝐚𝐫𝐞𝐧𝐜𝐲 𝐢𝐧 𝐦𝐚𝐫𝐤𝐞𝐭𝐬 𝐚𝐫𝐞 𝐧𝐨𝐭 𝐚𝐥𝐰𝐚𝐲𝐬 𝐛𝐚𝐝 𝐭𝐡𝐢𝐧𝐠𝐬 - done right, they will lead to improved investor confidence and outcomes. Transparency and regulation in the private credit market can be game-changers for the entire investment ecosystem. 🏦 Here’s why: - 𝐄𝐧𝐡𝐚𝐧𝐜𝐞𝐝 𝐭𝐫𝐚𝐧𝐬𝐩𝐚𝐫𝐞𝐧𝐜𝐲 𝐡𝐞𝐥𝐩𝐬 𝐢𝐧𝐯𝐞𝐬𝐭𝐨𝐫𝐬 𝐦𝐚𝐤𝐞 𝐢𝐧𝐟𝐨𝐫𝐦𝐞𝐝 𝐝𝐞𝐜𝐢𝐬𝐢𝐨𝐧𝐬, leading to increased confidence and trust. - With more regulation, the 𝐫𝐨𝐛𝐮𝐬𝐭𝐧𝐞𝐬𝐬 𝐨𝐟 𝐭𝐡𝐞 𝐚𝐬𝐬𝐞𝐭 𝐜𝐥𝐚𝐬𝐬 𝐢𝐬 𝐬𝐭𝐫𝐞𝐧𝐠𝐭𝐡𝐞𝐧𝐞𝐝, making it a more attractive option for diverse portfolios. - 𝐑𝐞𝐝𝐮𝐜𝐞𝐝 𝐫𝐢𝐬𝐤 𝐟𝐨𝐫 𝐢𝐧𝐯𝐞𝐬𝐭𝐨𝐫𝐬 𝐭𝐡𝐫𝐨𝐮𝐠𝐡 𝐬𝐭𝐚𝐧𝐝𝐚𝐫𝐝𝐢𝐬𝐞𝐝 𝐩𝐫𝐚𝐜𝐭𝐢𝐜𝐞𝐬 𝐚𝐧𝐝 𝐜𝐥𝐞𝐚𝐫 𝐫𝐞𝐩𝐨𝐫𝐭𝐢𝐧𝐠 𝐦𝐞𝐜𝐡𝐚𝐧𝐢𝐬𝐦𝐬, ensuring a safer investment environment. The Australian Financial Review recently highlighted the need for less secrecy in private credit. Implementing these changes can unlock significant potential for both investors, borrowers and the market as a whole. https://lnkd.in/gW8MjwKy By embracing these shifts, we can pave the way for a more secure and prosperous future in private credit investments. What are your thoughts on the need for increased regulation and transparency in private credit? Let’s discuss in the comments! 💬

Our global short-dated high yield bond strategy has a long-term track record in minimising defaults. This track record is primarily a result of seeking securities which mature in two years or less, and rigorously screening credits with a bottom-up credit analysis process which focuses on cash generation. By minimising defaults, we aim to maximise the potential to have an excess spread available to our investors. Read more in our latest paper: https://bit.ly/3SSHXgO Capital at risk. For professional investors only.

New research published today by the CFA Institute Research and Policy Center, titled “Private Markets: Governance Issues Rise to the Fore,” reveals new CFA Institute global survey data on investment professionals’ views about private markets governance and practices, including: conflicts of interest; asymmetry of information; General Partner/Limited Partner relations; transparency; valuation issues; fees and expenses; and regulation.

The idea of a mature market is that it most efficiently works to allocate investment capital.

How much could a DB scheme safely release from its surplus? The first step is to work out a cashflow-based understanding of scheme's assets. So, a scheme should ask if it can buy enough gilts and high-quality corporate bonds with cashflows that would more than cover benefits, even under very stressed market scenarios. Learn more here: https://bit.ly/4bACB0d Capital at risk. For professional investors only.

📊💼 SEBI’s New Circular on Information Ratio: Impact on Mutual Fund Risk Disclosure In finance, the information ratio is pivotal for assessing investment strategy effectiveness. Recently, SEBI issued a significant circular refining how this metric is utilized in Indian markets. Here’s what you need to know: 🔹Understanding the Information Ratio: It measures portfolio performance relative to a benchmark, gauging an investment manager’s ability to generate excess returns considering risk. The formula is: Information Ratio= Portfolio Return−Benchmark Return / Tracking Error where: 🔹IR = Information ratio 🔹Portfolio Return = Portfolio return for the period 🔹Benchmark Return = Return on the fund used as a benchmark 🔹Tracking Error = Standard deviation of the difference between portfolio and benchmark returns 🔹Key Point: A good information ratio starts at 0.5. Information ratios above signify progressively better results. Information ratios of 1 and above would be considered excellent. 🔹SEBI’s Directive: SEBI has mandated that mutual funds disclose risk-adjusted returns, not just raw returns. This includes reporting the information ratio, a key metric that quantifies risk-adjusted performance. 🔹Impact on Mutual Funds: This initiative aims to enhance transparency and empower investors with more comprehensive performance metrics. It ensures that investors have access to crucial data for making informed investment decisions. 🔹Educational Value: Familiarity with the information ratio is crucial for finance professionals and investors, influencing investment decisions and regulatory compliance. Why It Matters: SEBI’s proactive stance through this circular underscores its commitment to market integrity and investor protection. Stay informed about these updates to navigate financial markets effectively and seize opportunities aligned with regulatory changes. 📊💼