Muzinich & Co

While 2024 was always going to be a big year for elections, most of the attention from investors was due to be focused on the likes of India, the UK and the US. France was not on anyone’s radar until French president Emmanuel Macron called a snap election on June 9 following a disappointing showing by his Renaissance Party in the European Parliament Elections. But with no group winning a clear majority following the two round French election, where does the country go from here? That’s the question we try to answer in the latest episode of the Muzinich Podcast, featuring Erick Muller, director of product and investment strategy at Muzinich & Co. In the podcast, Erick shares his thoughts on: > The events that led to Macron calling an early election and the reality of what a hung parliament means for France in the short term> > What could happen next and how long it might take for there to be a resolution to the situation. > Whether the situation in France matters to credit investors and what should they look out for over the coming months. Please click to listen - https://lnkd.in/ejKfgiRK #france #frenchelections #publicmarkets

Investors in cash and short-dated fixed income may be concerned about reinvestment risk, given the downward trajectory of interest rates. In such an environment, where can investors seek yield enhancement and lower reinvestment risk? Tatjana Greil Castro, PhD and Ian Horn, CFA discuss why an allocation into short-dated corporate credit could offer a compelling opportunity in an environment where the yield curve re-steepens. Please click to learn more - https://lnkd.in/eqmYwau4 #shortdurationcredit #publicmarkets #fixedincome #riskmanagement Muzinich & Co views and opinions are for illustrated purposes only and not to be construed as investment advice.

Muzinich & Co Weekly Market Comment July has historically been a good month for credit, but with a hung parliament in France and yet more soft economic data coming out of the US, will this year be an exception to the rule? That’s the question we seek to answer in our latest roundup of the key developments in financial markets and economies. Please click to read the full article - https://lnkd.in/eSZ2FuRS

Mel Siew, Portfolio Manager at Muzinich & Co in Singapore joined Hong Kong’s Radio Television Hong Kong (RTHK) Money Talk Radio show this week to talk about his view on India, the recent elections and which parts of the Indian credit universe we think are most interesting. Thanks to RTHK Radio for having Mel on the broadcast. Listen to the full interview here - https://lnkd.in/e4-VGH3r To learn more about Muzinich & Co, please visit – www.muzinich.com

Muzinich & Co Asset Allocation Group Update – July 2024 > Sunday 7th July French election results confirmed our base case for hung parliament. Risk premium to stay above pre-election on French government bonds. > US data flow shows US economy softening. A September rate cut probability is rising. We maintain our neutral duration stance. > We keep our bias to carry strategies with an overweight in high yield. > We continue to rebalance in favour of US credit in IG but would broaden the rebalancing to high yield as well. We have reduced Euro sub financials in favour of senior bank debt.   Erick Muller, Director of Product & Investment Strategy, discusses the main conclusions of our Asset Allocation Group which include our scoring on the Fundamentals, Technicals and Valuations of global credit markets.   To learn more about Muzinich & Co, please visit - www.muzinich.com #publicmarkets #fixedincome #assetallocation Source: Muzinich & Co as of July 7, 2024, which are subject to change without notice. Views and opinions for illustrative purposes only, not to be construed as investment advice or an invitation to engage in any investment activity.

Why should investors consider mean and median spreads when looking at credit valuations? Portfolio manager Ian Horn, CFA Horn explains. Please click to learn more - https://lnkd.in/eFgperhn #publicmarkets #investmentgrade #corporatecredit

1988 Asset Management, a wholly owned subsidiary of Muzinich & Co., Inc., is pleased to announce the closing of 2 broadly syndicated loan CLOs: 1988 CLO 4 Ltd. on May 21st, and 1988 CLO 5 Ltd. on June 27th, with a total issuance of US$825.0 million.   1988 CLO 5 Ltd. is the fifth CLO managed by 1988 Asset Management. Our inaugural CLO, 1988 CLO 1 Ltd., closed in November 2022. CLOs managed by 1988 Asset Management have an aggregate outstanding par value of US$2.0 billion, as of the end of June 2024.   “We would like to thank all of our investors for their support and trust in making these transactions, and our entrance into the CLO market, a success. A core tenet of the Firm’s investment philosophy - capital preservation - has been extended into our CLO investment style. We look forward to working with our partners as we further strengthen and expand our global CLO platform,” said Justin Muzinich, Chief Executive Officer, Muzinich & Co To learn more about Muzinich, please visit - www.muzinich.com

Muzinich & Co Weekly Market Comment Despite a positive start to July for most risk assets, this is no for time for investors to be complacent. In our latest roundup of the key developments in financial markets and economies, we look consider three categories of risks that could potentially hit financial asset prices. But which is the biggest risk: An economic crisis? An event-driven crisis? A financially engineered crisis? Please click to read the full article - https://lnkd.in/eUMqCqGn

Muzinich & Co Corporate Credit Snapshot – July 2024 > Global credit generated positive returns across the board in June. > In the US, economic data showed signs of a slowdown in inflation and in the economy more broadly, the market tilted more definitively towards pricing in two rate cuts in 2024. Belief in the nearer-term likelihood of a soft-landing grew, with positive returns across most asset classes, and longer duration assets (i.e., equities and Treasurys) leading the way > In Europe, market moves were largely driven by political headlines after French President Emmanuel Macron called for a snap election in response to the results of the European parliamentary elections > Emerging Market (EM) debt generated strong positive returns this month with high yield slightly outperforming investment grade due to its superior coupon Please click to read our monthly Corporate Credit Snapshot which looks back at market events over the previous month - https://lnkd.in/eTUkeRhM #corporatecredit #fixedincome #publicmarkets Past performance is not a reliable indicator of current or future performance.

Why is Europe losing its appeal versus the US for credit investors? Is it down to political risk or other factors? In his latest monthly assessment of the key developments, themes and opportunities in investment-grade and high-yield credit markets, Muzinich Portfolio Manager Ian Horn explains why: ·        European credit no longer looks as attractive in terms of relative value ·        Peripheral European corporates may offer better value than peripheral banks ·        He has a bias to US duration Click here to read more. Muzinich views and opinions are for illustrated purposes only and not to be construed as investment advice. https://lnkd.in/eG9ixRxG