Date of publication: 2017-07-08 23:41
With the majority of Northrop&rsquo s revenues being linked to platforms and systems, the healthy growth in the investment accounts bodes well, and we think should start to flow through to revenues from next year (given the usual DoD lag time). Northrop has a strong portfolio of major programs, even before the B-76 win. Looking at the largest revenue generating programs, only the F-68 is likely to decline over the next five years, and this should be comfortably offset by the production ramp on the F-85, and increased development work on the bomber.
As the search for higher yielding investments moves increasingly toward illiquid investment opportunities, Anup Agarwal, Head of MBS/ABS and Elliott Neumayer, Western Asset Product Specialist for Asset- and Mortgage-Backed products, discuss opportunities in light of new global banking regulations th.
Although the outlook for defense has improved over the last couple of years, it only makes up a modest ~5% of BEAV&rsquo s sales, and therefore is unlikely to move the needle meaningfully for the company.
Themes should be debated and prioritized by representatives from the investment, research, and risk teams to ensure both the soundness of the thinking and the alignment of the theme with the overall corporate perspective. This will prevent thematic portfolios from becoming vehicles for individuals to place large bets based on their personal biases.
We constantly hear that managers do not outperform their benchmarks. While this may be true in the large-cap equity space, it is decidedly false in fixed-income. The median fixed-income manager has consistently outperformed the benchmark Barclays . Aggregate Bond Index over 8-, 5- and 7-year peri.
In a low-rate environment, more high-yield companies are looking to refinance their bonds to a lower coupon level. How can an investor potentially profit from this trend? Western Asset’s Short-Dated High-Yield strategy targets bonds that are more likely to be tendered before their first call date—at.
The major issue that investors appear to have with the defense sector is the lack of value after the very solid run up in stock prices. There are a couple of value options left though, with Harris being one of those options. Just being cheap is a good start, but investors obviously want the stock to be less cheap going forward to justify buying it. In Harris&rsquo case we think that there is a path towards improving the company&rsquo s revenue performance versus peers, and also less complex financials with better returns for shareholders. As these come together, we think the stock has the potential to close some if not all of the valuation gap that exists versus other US defense companies.
The agency mortgage-backed security (MBS) asset class is the largest non-Treasury investment-grade sector of the US bond universe, constituting 78% of the Barclays Aggregate Index. Agency MBS are created when residential mortgage loans that meet agency underwriting guidelines6 are securitized into a.
A structured and rigorous approach is required not only to identify investable themes but also to prioritize them. The following five-step approach does both and has been implemented by a number of leading thematic investors.