By Allan Martin, Partner NEPC, LLC Historically, there is a high correlation between the Yield-to-Maturity (YTM) of the Barclays Aggregate Index and the benchmark’s 6-year forward return. The current 12/14 Barcap Aggregate 6 yr YTM is 2.3%. With regular corporate bonds with such a low yield, American pension plans with target returns of 7 […] Read more »
Prospects for Insurance-Linked Securities and Cat Bonds in the 2H of 2015
By Twelve Capital Insurance Bonds For the Insurance Bond market, the year started with fears of European wide deflation and sluggish growth across the region. This spurred the ECB to act decisively and initiate a programme of quantitative easing which it intended to last until 2016, pumping EUR 60bn a month into the market. […] Read more »
Public BDCs: An Expensive High Dividend Stock Substitute or a Private Debt “Liquid Alternative”?
By Mary Bates, Director of Credit Strategies at Silver Creek Capital As interest in liquid alternatives surges and the search for yield continues, public Business Development Companies (“BDCs”) have received significant institutional interest. These REIT-like vehicles, which have historically focused on the retail market, appear very attractive at first blush, offering yields above traditional […] Read more »