FTfm on AV | FT Alphaville

FTfm on AV

Some highlights from Monday’s FTfm.

High yield bonds draw in billions
First quarter net inflows were close to the record for a full year, according to EPFR Global, as investors chase attractive yields buoyed by hopes that default rates will remain near their historic lows

Volatility-linked ETFs boost Source
Investors’ desire to protect themselves against any equity market sell-off has helped transform Source into the second fastest-growing exchange-traded fund provider in Europe this year

Of debt, dukes and monetary excess
Any economic weakness or threat of default will be met with an infinity of firepower – the vital thing is to avoid being over-exposed to government debt, writes John Plender

Property fund trades pass €1bn
The volume of transactions on PropertyMatch, the secondary marketplace trading platform for units in unlisted European real estate funds, has surpassed €1bn three years after its launch

Managers still see US shares as good value
Survey reveals the majority of institutional asset managers believe US equities remain attractively valued, despite a 24 per cent rally in the S&P 500 index in the past six months

EM corporate bonds seen as better bet
Although much EM corporate debt carries a higher rating than EM sovereign bonds, many investors are still wary of the asset class

Private equity chances in Brazil’s mid-market
More than 80 per cent of the private capital available in Brazil is chasing deals from among a small pool of only 3,000 large companies in the country. And those few big companies have more alternatives for their capitalisation – which means deal flow tends to be scarce, competitive, and relatively expensive. Conversely, the mid-market private equity sector is underfunded

Another troublesome feature of CDS usage
The real problem is that those owning CDS protection may have an incentive to push debtors into default and even outright bankruptcy, and may be able to do so through their bond/loan positions, by withholding support to a restructuring, which may preserve part of the “going-concern” value

With-profits unlikely to revive
There is talk of using with-profits for pensions, but investors might be suspicious, writes Pauline Skypala