DoubleLine Research Paper on the Outlook for U.S. Corporate Investment Grade Bonds

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DoubleLine, a global investment management firm, presents a positive outlook for investment grade corporate credit in a new research paper. Titled 'Investment Grade Corporate Bonds: A Convergence of Yield, Duration and Credit Advantages,' the paper emphasizes the potential for high single-digit returns with limited downside risk. It explores key factors such as yield per unit of duration, all-in yields, credit spreads, and rating migration, as well as the use of longer-term financing by IG issuers to mitigate refinancing risk. The paper also provides insights into the positive and negative outlooks of select sectors within the investment universe.

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

FAQ

What is the title of the research paper by DoubleLine?

The research paper is titled 'Investment Grade Corporate Bonds: A Convergence of Yield, Duration and Credit Advantages'.

Who are the authors of the research paper?

The research paper is authored by Robert Cohen, Director of Global Developed Credit, and Product Specialist Colin Callahan at DoubleLine.

What is the potential return profile mentioned in the paper?

The paper suggests the potential to generate high single-digit returns while running limited downside risk.

What factors are explored in the outlook for investment grade corporate credit?

The paper explores factors such as yield per unit of duration, all-in yields, credit spreads, and rating migration.

What is the significance of longer-term financing by IG issuers?

It is highlighted as an offsetting mitigant of refinancing risk around the timing of debt 'maturity walls'.

What does the paper provide insights into?

The paper provides insights into the positive and negative outlooks of select sectors within the investment universe.