Chart of the Week: Bonds Away
The Fed’s hawkish rates policy has pushed ten-year Treasury yields to a multi-year high. Source: Board of Governors of the Federal Reserve System (US)(Past performance is no guarantee of future results.)
The Fed’s hawkish rates policy has pushed ten-year Treasury yields to a multi-year high. Source: Board of Governors of the Federal Reserve System (US)(Past performance is no guarantee of future results.)
GP-led secondary equity transactions peaked in 2019 but still healthy share. Source: Evercore(Past performance is no guarantee of future results.)
The popularity of secondary equity investments has risen markedly since 2016. Source: Evercore(Past performance is no guarantee of future results.)
Investment grade bond issuers are paying more, but activity remains strong.
The Fed’s hawkish rate regime has tamed the higher pace of US economic growth.
Almost two decades of data show strong junior capital returns relative to other credit.
All-in yields of second-lien loans have risen to keep pace with first-lien upswings.
Consistent with senior debt trends, junior debt yields are up, leverage down.
2022 saw the second highest level of mezzanine fundraising of the past decade.
Investors go beyond traditional equities/fixed income models to include alternatives.