About Insight Investment
Insight Investment is a leading global investment manager and fixed income specialist firm within BNY Investments.
Appendix
AA-rated bonds are fixed-income securities judged to have a very strong capacity to meet financial commitments, with only slightly more risk than top-tier AAA bonds. They are considered high-grade investments that are safe but not immune to adverse economic conditions.
Artificial intelligence (AI) is a term for computer systems that can perform tasks typically requiring human intelligence, such as visual perception, speech recognition, decision-making, and language translation.
Credit ratings are an assessment of the creditworthiness of a company or government, indicating the likelihood that they will meet their financial obligations on time. Investors use credit ratings to determine the risk of buying bonds or other debt from issuing entities. Specialised credit rating agencies that issue ratings on companies and governments include Moody’s, S&P Global and Fitch Ratings.
Credit spread is the difference in yield between a bond and a comparable “risk-free” government bond (typically a US Treasury) of the same maturity. A wide credit spread means the yield gap between the corporate bond and the risk-free benchmark is large. A narrow credit spread means the yield gap between the corporate bond and the risk-free benchmark is small.
Duration is a measure of how sensitive a bond’s price is to changes in interest rates. The longer the duration, the more sensitive the price.
Fallen angels are bonds that were investment grade but have been downgraded to high yield.
Fixed-rate bonds pay the same interest rate for the whole life of the bond. This means investors know in advance how much interest they will receive and when.
Hyperscalers are very large technology companies that run huge networks of data centres and provide cloud computing services at scale.
Investment grade refers to bonds or other debt securities that have been rated by credit rating agencies as having a relatively low risk of default.
Liquidity is how easily an investment can be bought or sold without much effect on its price.
Maturity is the date a bond’s money is repaid. Longer-dated bonds are repaid further in the future.
The Bloomberg Global Aggregate Corporate Index is a flagship, multi-currency benchmark that measures global investment-grade, fixed-rate corporate debt.
The Bloomberg US Corporate High Yield Bond Index measures the US dollar-denominated, high yield, fixed-rate corporate bond market.
The Bloomberg US Corporate Index measures the US dollar-denominated, investment grade, fixed-rate, taxable corporate bond market.
The S&P 500 Index is a widely accepted, unmanaged index of US stock market performance.
“BLOOMBERG” and the Bloomberg indices listed herein (the “Indices”) are service marks of Bloomberg Finance L.P. and its affiliates, including Bloomberg Index Services Limited (“BISL”), the administrator of the Indices (collectively, “Bloomberg”) and have been licensed for use for certain purposes by the distributor hereof (the “Licensee”). Bloomberg is not affiliated with Licensee, and Bloomberg does not approve, endorse, review, or recommend the financial products named herein (the “Products”). Bloomberg does not guarantee the timeliness, accuracy, or completeness of any data or information relating to the Products.
Risks
Bonds are subject generally to interest-rate, credit, liquidity, call and market risks, to varying degrees. Generally, all other factors being equal, bond prices are inversely related to interest-rate changes and rate increases can cause price declines. Investment grade is a rating of fixed-income bonds, bills, and notes by credit rating agencies. High yield bonds involve increased credit and liquidity risk than higher rated bonds and are considered speculative in terms of the issuer’s ability to pay interest and repay principal on a timely basis.
Bond ratings reflect the rating entity’s evaluation of the issuer’s ability to pay interest and repay principal on the bond on a timely basis. Bonds rated BBB/Baa or higher are considered investment grade, while bonds rated BB/Ba or lower are considered speculative as to the timely payment of interest and principal. Credit ratings reflect only those assigned by Nationally Recognized Statistical Rating Organizations (NRSRO) that have rated fund holdings. Split-rated bonds, if any, are reported in the higher rating category.
This information contains projections or other forward-looking statements regarding future events, targets or expectations, and is only current as of the date indicated. There is no assurance that such events or expectations will be achieved, and actual results may be significantly different from that shown here. The information is based on current market conditions, which will fluctuate and may be superseded by subsequent market events or for other reasons.
