The BBB bond market, neither cuts nor hikes, and recession warnings?

Genuine Impact
Jul 2 · 3 min read
Alister Sneddon, CTO

Here are the top 3 insights for July 2nd, prepared by Alister, our CTO.

Today’s Brief

  • Janus Henderson: Assessing the BBB Bond Market — It’s Not as Bad as it Seems
  • BWS: Neither cuts nor hikes. So far.
  • Franklin Templeton: Should Markets Heed Recession Warnings?
  • BBB-rated debt now represents roughly half of the U.S. investment-grade market, which has sparked fears of widespread downgrades.
  • While caution is warranted, we believe compelling investment opportunities still exist and the concerns surrounding the sector are overblown.
  • Assessing an industry’s vulnerability to an economic downturn and an individual issuer’s ability to delever are the keys to identifying opportunities in BBB-rated debt.

Genuine Scores for the top 3 US focused Bond funds

  • iShares Ultra Short-Term Bond ETF, 100
  • PGIM Core Short-Term Bond Fund, 100
  • GMO US Treasury Fund, 100
  • Interest-rate hikes appear to be off the table for now and the market already expects rate cuts in the U.S. this year. We do not.
  • We expect most government-bond yields to move sideways. This makes U.S. sovereigns interesting again.
  • Elsewhere, our focus is on corporate and emerging-market bonds with attractive yields.

Genuine Scores for top 3 Bond funds

  • iShares Ultra Short-Term Bond ETF, 100
  • PGIM Core Short-Term Bond Fund, 100
  • BlueOrchard Microfinance, 100
  • Amid a renewed US-China trade spat and additional tariff tensions between the United States and Mexico, investor concerns about a possible recession have heightened, according to Ed Perks, executive vice president and chief investment officer, Franklin Templeton Multi-Asset Solutions.
  • He discusses how markets are reacting to the possibility of a US recession and explains why he favours a defensive stance for the multi-asset space during this period.

Genuine Scores for the top 3 Equity funds

  • Versus Capital Multi-Manager Real Estate, 99
  • Fidelity Series Real Estate Income Fund, 95
  • Akre Focus Fund, 93

Want to get the the Genuine Impact app?
You can download the Genuine Impact app for iOS and Android devices on our website, https://www.genuineimpact.co.uk

All the best,
Alister and the Genuine Impact Team

p.s. all Genuine Scores are accurate as of the 14th of June

Genuine Impact

Written by

An investment intelligence platform created for everyone https://www.genuineimpact.co.uk/