While 2022 has been an annus horribilis for most bond investors, there is opportunity looking into 2023. With rapid and aggressive rate hikes from the Fed, bond yields are now at levels not seen in over a decade. And given the uncertainty over an impending recession, bonds have emerged as the favored asset class. As the memo reads, Bonds are back. Don’t just take our word for it. Some of the world’s largest asset managers have thumped the table with calls to buy bonds.
“We lived in a decade and a half of the TINA [there is no alternative] world…And now it is so exciting, I think, to be in a world where there are some incredible opportunities staying very high in quality, short in duration, in the fixed-income markets and on yields that we could have only dreamed about because bonds are back — because it’s BARB.” – Gargi Chaudhuri, head of investment strategy for the Americas, BlackRock’s iShares
“.…Value has returned to the fixed income markets. Just thinking about nominal yields, we’ll start here in the United States, across the yield curve now, you could lock in a very high quality bond yield today. You could look for very high quality spread product, and very, very easily put together a portfolio up in the 6, 6 and a half, percent type yield range, without taking a lot of exposure to economically sensitivity assets.” – Dan Ivascyn, Group Chief Investment Officer, PIMCO
“Investors may be able to lock in 5% bond returns for five years or more in 2023… It has been a long time since we have been able to say that.” – Kathy Jones, chief fixed-income strategist, Charles Schwab
With thousands of bonds available, it can be overwhelmingly difficult for investors to decide which bonds are worth investing in. To make things easier, we have put together an interactive bond screener – in the form of a scatter plot – to help you filter the broader dollar bond universe to find bonds that meet your custom criteria. The screeners are grouped into: Investment Grade Bonds, High Yield Bonds and Perpetual/AT1 Bonds. You can use the sliders and checkboxes to filter the bond universe by region, industry, yield range, remaining years to maturity, maturity type and rating.
How to Navigate the Bond Screener Tool:
The scatterplot tool plots all dollar bonds in our universe within a category (investment grade, high yield, AT1s) with remaining years to maturity or first call date on the X axis and yield to worst on the Y axis. Each dot represents a bond – hovering over it will give you the bond’s details – coupon, maturity, current price, yield, etc.
The tool has a series of filters that you can use to narrow down the bond universe based on your custom criteria. The filters available are:
Yield: The yield slider allows you to define a yield range that you’re looking for. You can click and drag the points on the slider to define the range. Eg: 5.00% – 9.00%
Region: The region checkboxes allow you to filter for bonds from your preferred regions. By default, all regions are selected. If you want to filter for specific regions, you can select the corresponding checkboxes. Eg: APAC, LatAm etc.
Industry: Similar to the region filter, you can use the industry checkboxes to select multiple industries. Eg: Banks/Financial Services
Maturity Type: This filter lets you filter for Perpetual and non-Perpetual bonds
For example, within IG dollar bonds, one can search for European bank bonds, excluding perps, that mature or are callable between 1-5Y with the following search parameters:
Maturity Type: Non-Perpetual
Some of the bonds that appear in the results are listed in the table below.
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