Credit

CNP Assurances has successfully placed €750 million worth of notes due 30 June 2051 and paying interest at 2.5% until 30 June 2031. The notes qualify as Tier 2 capital under Solvency II.

Ariel Bezalel, Head of Strategy, and Harry Richards, Fund Manager, explain where they have been snapping up credit opportunities, while remaining alert to the risks often concealed in bear market rallies.

The European Securities and Markets Authority (ESMA), the EU’s securities markets regulator, has today published a Thematic Report on Collateralised Loan Obligations (CLOs) credit ratings in the European Union (EU).

Deteriorating collateral values and higher defaults will impair the performance of Irish re-performing RMBS, even if cash reserves are adequate to cover temporary collection delays and liquidity shortfalls related to Covid-19 payment holidays.

As an increasing number of companies battle the economic consequences of COVID-19, their ability to service bond payments is coming under intense scrutiny. In this Q&A, Sunita Kara considers whether current high-yield valuations adequately compensate investors for default risk and looks at the broader implications of the pandemic.