|Bid||19.72 x 800|
|Ask||20.24 x 2200|
|Day's Range||19.50 - 20.15|
|52 Week Range||6.38 - 20.42|
|Beta (5Y Monthly)||1.38|
|PE Ratio (TTM)||18.78|
|Forward Dividend & Yield||0.62 (3.10%)|
|Ex-Dividend Date||Nov 10, 2020|
|1y Target Est||N/A|
Shareholders in Invesco Ltd. ( NYSE:IVZ ) may be thrilled to learn that the analysts have just delivered a major...
(Bloomberg) -- Bond-market titans are looking past surging Covid-19 cases and economic uncertainties as they load up on debt in businesses most devastated by the pandemic.BlackRock Inc., Vanguard Group Inc., Invesco Ltd. and Nuveen expect mass vaccine distribution, a potential multitrillion-dollar stimulus package and pent-up demand from lockdowns to boost industries like transportation, leisure, energy and the financial sector. Buying such bonds in both the investment-grade and high-yield markets could deliver some of the best rewards this year, the money managers say.“We want to be exposed to sectors that will do well in a recovery,” said Arvind Narayanan, a senior portfolio manager for Vanguard’s active investment-grade credit strategies.More broadly, credit should benefit from an expected slowdown in supply and strong demand from domestic and overseas buyers, especially against the backdrop of $16.4 trillion of negative-yielding debt, the investors say.Here are some of their top credit calls for 2021:BlackRock (AUM: $7.8 trillion)The world’s biggest asset manager expects a “significant earnings recovery” that’s likely to result in a multiyear expansion, and is betting on sectors like technology, transportation, leisure, lodging and gaming. A steeper yield curve and improving economy will also boost the financial sector, according to high-yield portfolio managers David Delbos and Mitchell Garfin.The firm favors mid-to-lower quality single B and CCC bonds, and is considering investing in longer duration BBBs in pipelines, semiconductors and industrials on a hedged basis.Vanguard ($7.1 trillion)Most of the sectors hit hard by the pandemic have largely recovered, at least judging by how their debt trades, but there’s still some value left, Narayanan said. He’s looking to keep cash handy to take advantage of any unforeseen challenges, including a slower pace of vaccination.“There will be hiccups, and we would like to preserve some dry powder to take advantage of those dislocations,” he added.Vanguard expects the overall economy to normalize over the next 12 to 18 months and is looking for value in sectors like airlines and energy. The firm also likes large U.S. banks.Invesco ($1.2 trillion)Invesco is looking to buy debt in sectors like travel and leisure that have room to run as the economy improves, according to Matt Brill, head of U.S. investment-grade credit. Once more Americans are vaccinated, that will also benefit BBB consumer cyclicals, especially as several parts of the population have seen their wealth grow in lockdown.“Pent up demand is there for when things return to normal, and it’s just a question of how quickly that will happen,” Brill said.Nuveen ($1.1 trillion)BBB rated companies may outperform as they focus on paying down debt, compared to higher-rated single As that are more likely to engage in equity payouts and mergers and acquisitions, according to Anders Persson, chief investment officer of global fixed income at Nuveen. His top picks include the banking and telecom sectors, and he expects companies like AT&T Inc. and Verizon Communications Inc. to ramp up deleveraging.“We certainly want to be mindful of a little bit of supply to fund the 5G spectrum, but we view that to be a good buying opportunity,” said Persson.T. Rowe Price ($1.5 trillion)While the U.S. investment-grade debt market had much better valuation prospects six months ago, it is still reasonably priced and attractive compared to high-quality debt in other parts of the world, according to Steven Boothe, a portfolio manager for global and U.S. investment-grade bonds at T. Rowe Price Group Inc. The asset manager continues to like the U.S. energy sector as there’s room for spreads to tighten further, particularly if oil stays above $50 a barrel.“As long as we have stability in the price, that generally should be fairly well supportive of energy credit quality and some relative spread compression,” Boothe said.Risk premiums on bonds of non-U.S. banks may narrow, specifically those in the U.K. post Brexit, Boothe said. He’s also seeing pockets of opportunity across technology, media and telecom and in real estate investment trusts.For more articles like this, please visit us at bloomberg.comSubscribe now to stay ahead with the most trusted business news source.©2021 Bloomberg L.P.
Past performance may be no guarantee of future results, but in a momentum-driven market, what's worked recently often continues to work. Many of the stock market's most powerful trends will affect companies not just for a single year, but also for a long time to come. One of those big trends has been the push toward electric vehicles and renewable energy.