Bringing you live news and features since 2006 

Institutional investors and wealth managers expect a rise in corporate credit downgrades, says Tabula research

RELATED TOPICS​

New research commissioned by fixed income ETF provider Tabula Investment Management Limited (Tabula) reveals that 45 per cent of European institutional investors and wealth managers expect more corporate credit downgrades and defaults over the next nine months. Only 41 per cent expect the fixed income market to stabilise.

One hundred professional investors across the UK, Sweden, Switzerland, Denmark, Norway, Italy, Germany and France were interviewed for the research.

Overall, 84 per cent of professional investors expect flows into fixed income funds to increase, and 76 per cent believe a key reason will be because of increased market volatility and shocks. Some 67 per cent think flows will rise because investors will be looking for income as companies cancel, suspend or cut dividends. Similarly, 63 per cent think flows will increase because on-going strong support from central banks and governments will continue to make bonds attractive for investors, and 43 per cent said ongoing poor returns on cash will further support this trend.

When it comes to emerging market fixed income, 33 per cent of professional investors expect allocations to emerging market debt to increase dramatically this year, and almost half (49 per cent) expect some rise.

“The fundamentals and market dynamics are driving investment in fixed income, however, the persistent innovation that ignited the equity ETF market has been lacking in this sector, which means the large incumbent funds continue to gather assets,” says Tabula CEO, Michael John Lytle.  “However, investors are hungry for new products, and we have been using our many decades of experience in the credit markets to develop better passive exposure, providing precise, practical tools for portfolio construction. For example, our US Enhanced Inflation ETF (TINF) provides unique exposure to both expected and realised inflation in one product.”

Tabula currently offers a range of unique fixed income ETFs.

Latest News

Figment Europe, a provider of institutional staking infrastructure, writes that it is solidifying its presence in the heart of Europe’s..
Saving and investing app, Moneybox, has doubled the number of ETFs available on the platform, in the light of ‘growing..
Global X ETFs has announced the appointment of Ryan O'Connor as its Chief Executive Officer effective as of April 8, 2024. ..
Value-driven structured credit investing firm, Angel Oak Capital Advisors, LLC, has announced the completed conversions of two of its mutual..

Related Articles

Sal Esposito, Zacks Investment Management
Zacks Investment Management started doing investment research in 1978 and in 1992 started its investment management arm, initially with SMAs...
Jeremy Senderowicz, Vedder Price
Jeremy Senderowicz, a member of the Investment Services Group at law firm Vedder Price, has witnessed a steady upswing in...
Graham MacKenzie, Toronto Stock Exchange
The evolution of ETFs has been a multi-decade experience for Toronto Stock Exchange says Graham MacKenzie, managing director, Exchange Traded...
Frank Koudelka, State Street Global Services
ETF data provider and ETF Express data partner, Trackinsight, has published its Global ETF Survey 2024 Report: ‘50+ Charts on...
Subscribe to the ETF Express newsletter

Subscribe for access to our weekly newsletter, newsletter archive, updates on the site and exclusive email content.

Marketing by