Cornerstone Advisers - Global Listed Property Review       (PDF)
April 23, 2013

Global real estate securities trailed global equity benchmarks during the quarter, but continued to post solid performance. Japan outperformed by a wide margin on the back of continued positive momentum towards the new government and the expectation of aggressive monetary easing measures to be implemented by the new BOJ regime. The U.S. was also strong, supported by solid macro fundamentals and investors’ search for yield. Europe lagged due to macro headwinds.

13/628

The Babson Capital Staff Letter - 1st Quarter 2013       (PDF)
April 12, 2013

• Markets: Equities and high yield loans and bonds outperformed less risky assets during the first quarter of 2013
  
• Economic Review: U.S. real GDP grew at a stall-speed of 0.4% in the fourth quarter of 2012. Recent data suggest that U.S. economic growth perked up slightly in the first quarter
  
• Economic Outlook: We continue to hold to the view that financial repression conditions persist

Cornerstone European Research Quarterly       (PDF)
March 12, 2013

Initially driven by heavy fiscal consolidations, Europe returned to recession in 2012. This was further exacerbated by escalating uncertainty regarding the sustainability of the Euro single currency–delaying decisions to invest and consume. Southern Europe was thus mired in an ever deepening recession, while even in the more resilient core Northern economies growth slowed to a crawl.

13/378

The Babson Capital Investment Outlook       (PDF)
January 31, 2013

In this semi-annual investment outlook, Babson Capital presents its view on the macroeconomic environment and identifies opportunities that we believe will materialize across the investment markets in which we manage.

Global Senior Secured Loans       (PDF)
January 30, 2013

Even though these loans are issued by below-investment-grade companies, they are senior in the company’s capital structure and secured by the assets of the corporation. In addition, senior secured loans may provide further protection to investors through financial covenants. In many cases, this has the potential of keeping recovery rates high. Loan prices are also less sensitive than other debt instruments to interest rate movements due to their floating-rate coupon payments.

Cornerstone Advisers - Global Listed Property Review       (PDF)
January 22, 2013

Global real estate securities outperformed global equity benchmarks during the quarter and continued to post solid performance. Europe was the top performing region while Asia also continued its strong run. Within Europe most major countries outperformed as the aforementioned stabilization helped to reduce risk premiums. Asia was led by Japan, which saw a reversal in sentiment following the election of a new government, and its aggressive stance on fiscal and monetary policies contributed to a rapid weakening of the Yen and strong rebound in equity markets.

13/121 

The Babson Capital Staff Letter - 4th Quarter 2012       (PDF)
January 11, 2013

• Markets: Risk assets produced mixed results during the fourth quarter. High yield bonds and loans outperformed more conservative assets, yet equities underperformed
  
• Economic Review: U.S. GDP growth reached 3.1% in the third quarter of 2012 after an anemic 1.3% in the second quarter
  
• Economic Outlook: We maintain our view that the U.S. and global economies remain stuck in a slow growth, low-interest-rate environment

Using Senior Secured Loans in Cash Balance Plans       (PDF)
December 11, 2012

• Many public pension plans are now utilizing cash balance plans as a means of funding their retirement obligations
• Cash balance plans are best served by a diversified investment portfolio that achieves an annual return that matches or exceeds the interest credit rate
• Senior secured loans can offer diversification, rate protection and yield for cash balance plans

Why CLO Managers Matter       (PDF)
November 30, 2012

• The tepid economic recovery in the post-2008 credit-crisis era provides investors with unique opportunities in the CLO market.
• Evaluating a CLO manager’s historical performance provides key insight into their investment style, upfront portfolio construction and their ongoing ability to manage credit risk during turbulent markets.
• During the 2008 credit crisis, the disparity between strong and underperforming CLO managers widened dramatically.

Finding Attractive Returns in Global High Yield       (PDF)
November 08, 2012

• Despite recent spread tightening, global high yield bond and loan markets offer attractive investment opportunities
• Spreads remain elevated and default rates are expected to remain below average
• Corporate fundamentals remain strong as high yield companies have meaningfully reduced debt over the last few years