Viewpoints

The maturity wall facing high yield bond issuers has garnered much attention. But given the market’s short duration profile, lower prices and higher-quality relative to history, the reality facing issuers is less daunting.

Against a backdrop of reduced values, resilient fundamentals, and the prospect of lower financing costs, potential opportunities are emerging across the U.S. real estate market. But given the uncertainties remaining, caution remains key.

The pace of the recovery in the European real estate market will likely depend on variations in debt funding gaps by location and property type. The Barings Real Estate team discusses how this is shaping opportunities across the market.

Compelling income opportunities supported by favorable fundamental and technical conditions continue to attract investors to high yield bonds and loans.

We have been investing in high yield bonds, loans and CLOs for decades—managing investments on behalf of our clients through the ups and downs of multiple market cycles. And importantly, we have done so with consistency.

Direct lending deals are getting bigger—but arguably, the most compelling relative value (still) lies in the traditional or “true” middle market.

Downward price pressures are easing in the European real estate market. The timing of recoveries in pricing by geographies and sectors likely will occur in line with variations in real estate debt refinancing funding gaps and long-term growth drivers. The Barings Real Estate team discusses how this is shaping investment opportunities.

The U.S. commercial real estate market is approaching stabilization and recovery, supported by consensus that policy rate cuts will happen eventually, followed by lower debt costs. The Barings Real Estate team discusses how this backdrop is shaping opportunities across the asset class.

A closer look at the dynamics shaping today’s high yield bond and loan markets reveals the potential for continued strong performance ahead.