Tenax Capital Ltd’s Post

Fascinating read on a recent dislocation in the #catbond market following a vendor model update. Tenax Capital Ltd believes this presented an opportunity for cat bond fund managers and investors that are sophisticated enough to take advantage of any market dislocations that occur and drive pricing developments. “We can further conclude that this resulting pricing movement may present a significant buying opportunity for funds that do not adhere strictly to expected loss criteria as their core investment guideline,” their ILS team said. Our team at Reask is engaged with ILS managers and investors on this very subject. We work together to provide a better toolbox to understand their current and near term risk for their #hurricane exposures. This greatly help their communication with investors and trading strategies. Feel free to reach out. #tropicalcyclone #climaterisk #ILS #catastrophebonds

Within the global fixed income/credit space, #ILS #CatastropheBonds are one of the lesser known and more misunderstood opportunities that actually provide constructive #portfolio #diversification and #riskmitigation aspects. The below update from Tenax Capital Ltd is a worthwhile read for those professional #assetallocation / #fundselection experts and #institutional / #wholesale asset owners (#pensionfund, #insurancecompany, #bank, #familyoffice) seeking a deeper understanding of the opportunity set and how it can complement your portfolio construction efforts. The Tenax Capital Ltd ILS UCITS Fund was the top performing #UCITS Fund in its peer category through 2023 and continues it stellar performance trajectory - so insights from this team are worth paying attention to. #ILS #CatBond #FixedIncome #Credit #PortfolioConstruction #AssetAllocation #Diversification #Risk #Hedging #Volatility #Pricing #Valuation Tenax Capital Ltd Haven Green Investment Management

The Schroders Credit Lens for June highlights how, relative to their history, USD spreads are much tighter than Euro, and this is the case across ratings. USD IG spread dispersion is lowest since pre-Global Financial Crisis (GFC), while USD HY dispersion is around average. Learn more: https://okt.to/YVKZL3

Digging into the complexities of investing in commodities with a sustainable lens. Bloomberg. Sustainable investors considering extending their sights to the commodity markets have a lot to consider; the #emissions associated with not just the commodities but the derivatives typically used in portfolios. They also need to understand how carbon credit futures are being used. 🔗 Read the full article on Investment IQ: https://lnkd.in/eyweNCEW #financialadvisor #investment #fundmanagement #assetmanagement

Digging into the complexities of investing in commodities with a sustainable lens. Bloomberg. Sustainable investors considering extending their sights to the commodity markets have a lot to consider; the emissions associated with not just the commodities but the derivatives typically used in portfolios. They also need to understand how carbon credit futures are being used. 🔗 Read the full article on Investment IQ: https://lnkd.in/eyweNCEW #investing #assetmanagement #wealthmanagement #finance

Digging into the complexities of investing in commodities with a sustainable lens. Bloomberg. Sustainable investors considering extending their sights to the commodity markets have a lot to consider; the #emissions associated with not just the commodities but the derivatives typically used in portfolios. They also need to understand how carbon credit futures are being used. 🔗 Read the full article on Investment IQ: https://lnkd.in/eyweNCEW #investing #assetmanagement #wealthmanagement #finance

Digging into the complexities of investing in commodities with a sustainable lens. Bloomberg. Sustainable investors considering extending their sights to the commodity markets have a lot to consider; the emissions associated with not just the commodities but the derivatives typically used in portfolios. They also need to understand how carbon credit futures are being used. 🔗 Read the full article on Investment IQ: https://lnkd.in/eyweNCEW #investing #assetmanagement #wealthmanagement #finance

Let’s talk about covered bonds… and the spread correction which was overdue ✅ First things first: It was a pleasure for us to attend last week’s covered bond investor conference organized by The Covered Bond Report, Verband deutscher Pfandbriefbanken (vdp) and ICMA - International Capital Market Association. Once again, the covered bond community demonstrated to be up to date with the current state of play when it comes to market developments, regulatory topics as well as risks in the CRE sector and the relevance of sustainability for financial markets. ✅ In terms of primary market activity, we must admit that NIPs seem to a bit too low for a really healthy market. Looking back on the past few trading days, we have noticed a spread correction on the secondary market. We are certainly of the opinion that this correction was long overdue. ✅ From our perspective, the ECB council’s decision of 06 June injected little in the way of momentum into the covered bond segment. In fact, demand patterns are determined by factors that are barely influenced by modest interest rate steps of this kind. Investors tend to focus more on the relative attractiveness of covered bonds compared with seniors or credits when it comes to their investment decisions. ✅ Following our ESG Update we have published last week, in our covered focus article of this week we concentrate on ESG topics in the covered bond segment. It almost needless to say that “green deals continue to dominate”. As regards the Public Issuers/SSA universe, it is highly recommended to not miss out the article form Norman, Lukas-Finn and Christian dealing with Nordic Agencies. NORD/LB Floor Research Norman Rudschuck Lukas-Finn Frese Christian Ilchmann Lukas Kühne Alexander Grenner

Let’s talk about covered bonds… and who's is harshing the mellow? ✅ The general market environment is currently characterised by political surprises that are not really surprises or distortions that have been clear for a long time. The mood on the covered bond market is not exactly cheerful at the moment either and the repricing is continuing.   ✅ Fundamentally, which means in terms of credit quality of covered bonds, the situation has not really changed drastically. Rather, it is the movements in other submarkets that make further spread widenings - especially at the long end - more likely. And the Bund asset swap spread does not really make the covereds look favourable here. Hence, from a relative value perspective, the repricing on the secondary market does not seem to have run its course yet.   ✅ In our current Covered Bond & SSA View Lukas and Alexander provide an overview on the ESG market for EUR benchmark covered bonds. This market continues to experience strong growth, even though the issuance volume in 2024 will not quite match the record level seen in 2023.   ✅ On the Public Issuer/SSA side Norman and Lukas-Finn discuss the current LCR classification of NORD/LB Floor Research’s SSA coverage.   🔔 Last but not least, it is worth highlighting the successful kick-off of our NORD/LB Capital Markets series on housing markets ( ⬇️ see link in the comments below ⬇️ ). NORD/LB Floor Research Norman Rudschuck Christian Ilchmann Lukas-Finn Frese Tobias Cordes Lukas Kühne Alexander Grenner

A new service offers Forecast Contracts on economic and climate indicators, allowing clients to trade based on upcoming data releases. These contracts help hedge against or express opinions on key events, using an accessible web platform. Immediate indicators include US economic metrics and global climate measures, with plans for further expansion. #Financialservices, #Economicdata, #Climatetrading, #Riskmanagement, #Investment, #Forex, #Trading