TAMPA,
Fla., Dec. 14, 2023 /PRNewswire/ -- The outlook
for investment grade (IG) corporate credit is more favorable than
it has been in a decade, Robert
Cohen, Director of Global Developed Credit at DoubleLine,
and Product Specialist Colin
Callahan, conclude in a new research paper.
To read the paper, titled "Investment Grade Corporate Bonds: A
Convergence of Yield, Duration and Credit Advantages," please click
on the following link:
https://doubleline.com/wp-content/uploads/DoubleLine-Investment-Grade-Corporate-Outlook_12-9-2023.pdf
"The yield, duration and credit quality foundation provide an
opportunity to construct a high-quality portfolio with a positively
skewed return profile with the potential to generate high
single-digit returns while running limited downside risk," Messrs.
Cohen and Callahan write. They explore the key ingredients in this
outlook: yield per unit of duration, all-in yields, credit spreads
and rating migration. Then they review the widespread use of
longer-term financing by IG issuers during the years of
historically low borrowing costs and its significance as an
offsetting mitigant of refinancing risk around the timing of debt
"maturity walls," a colloquial term for when maturities arrive en
masse. Finally, the paper breaks down select sectors of this
investment universe into positive and negative outlooks.
About DoubleLine
DoubleLine Capital LP is an investment adviser registered under
the Investment Advisers Act of 1940. DoubleLine's offices can be
reached by telephone at (813) 791-7333 or by email at
info@doubleline.com. Media can reach DoubleLine by email at
media@doubleline.com. DoubleLine® is a registered
trademark of DoubleLine Capital LP.
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SOURCE DoubleLine