Showing 1 - 10 of 88 entries
MSCI BlogDid Bonds Deliver? Leveraging Fixed Income During the COVID Crisis
Investors may employ leverage with lower-risk asset classes such as bonds to seek higher risk and returns. We assessed the effects of leverage on the returns of three hypothetical multi-asset-class portfolios during the COVID-19 crisis.
MSCI BlogCorporate Bonds Through a Factor and ESG Lens
COVID-19 has had a profound impact on how companies manage cash flows and liquidity. Bond investors face the possibility of increased leverage, rating downgrades and defaults. Can factors and ESG metrics shed light on these risks?
MSCI BlogUp in Smoke? Brazil’s Wildfires May Affect Bond Spreads
Clearing Brazilian forests to make way for agriculture may spur a backlash to soy and beef producers if purchasers impose deforestation-free rules. What are the potential implications for debt of affected companies and for Brazilian sovereign debt?
MSCI BlogSurging Corporate-Bond Supply: Reason to Worry?
In the months since the onset of the COVID-19 pandemic, companies issued a large amount of corporate bonds. As a result of this surge, corporate debt has grown substantially — a burden that institutional credit investors may wish to monitor closely.
MSCI BlogConsumer ABS: Recovering from Coronavirus?
After the U.S. COVID-19 lockdown, new monthly remittance reports for asset-backed securities indicated performance deterioration and signaled potential challenges ahead. Meanwhile, in China, ABS showed signs of recovery.
MSCI BlogCan AI Model the Complexities of MBS Prepayment?
Machine learning using neural networks has been successfully applied to fields in which extremely complex patterns can prove challenging for other algorithms. Are neural networks suited for modeling prepayment risk in agency mortgage-backed securities?
MSCI BlogFour COVID-19 Scenarios: What Might Happen Next?
Our latest COVID-19 stress test looks at four potential financial-market outcomes ranging from a swift V-shaped recovery to a pessimistic L-shaped scenario, in which outbreaks recur and lockdowns return well into 2021.
MSCI BlogUsing Risk Analytics to Highlight Opportunities in Volatile Markets
Risk analytics can serve many functions for an institutional investor, including compliance, risk management, portfolio management and trading and strategy development. They may also highlight new opportunities that may be unique to volatile markets.
MSCI BlogConsumer ABS Under Coronavirus in the US and China
Beyond COVID-19’s steep human toll, the pandemic’s disruption of economic life has led to widespread loss of income and impaired some borrowers’ ability to repay loans. What could the impact be for investors in consumer asset-backed securities in the U.S. and China?
MSCI BlogCredit in the COVID Crisis: Contagion, Valuation, Default
As the COVID-19 crisis unfolded, credit markets deteriorated under the stress of a sharply diminished economic outlook. We analyze three indicators of credit-market conditions: default risk, relative value and contagion risk.