Latest news with #Cunniffe
CNBC
21-07-2025
- Business
- CNBC
This is one of the most attractive opportunities for income, Vanguard says. Here's what the firm likes
Bond investors still have one of the most attractive entry points in decades to generate portfolio income, according to Vanguard. Though off their highs of the year, yields have remained elevated across the Treasury and credit markets. The 10-year Treasury yield is currently around 4.4% and the Vanguard Total Bond Market ETF (BND) , which provides broad exposure to the taxable investment-grade U.S. market, has a 30-day SEC yield of 4.39%. Bond yields move inversely to prices. BND YTD mountain Vanguard Total Bond ETF year to date Fixed income has also been a stabilizer to portfolio performance this year thanks to their higher starting yields, the firm said a recently released third-quarter outlook. "Higher income returns have helped provide a cushion against recent market volatility, keeping bond returns steady amidst larger swings in equities," the report said. Finding opportunity Vanguard sees opportunities across sectors. Within Treasurys, the firm expects a range-bound environment and prefers holding duration exposure in the belly of the yield curve. When it comes to credit, investment-grade corporates and other high-quality credits offer the most compelling risk-adjusted returns, Colleen Cunniffe, Vanguard's head of global taxable credit research, told CNBC. "Investment-grade corporates remain fundamentally sound, with resilient margins, agile supply chains, and steady productivity gains helping them weather recent tariff noise," she wrote in an email. The Vanguard Total Corporate Bond ETF (VTC) currently has a 5.09% 30-day SEC yield and a 0.03% expense ratio. VTC YTD mountain Vanguard Total Corporate Bond ETF year to date Within the segment, Cunniffe likes short-dated financials for their relative value. Banks are also fundamentally sound since they are well-capitalized with conservative liquidity needs, she added. In addition, Vanguard is overweight BBB-rated industrial issuers. Cunniffe's team also favors utilities within the investment-grade space thanks to their stable cash-flow profiles and strong demand for electricity from the rise of artificial intelligence. "This demand has prompted increased capital investment, leading to more bond issuance and, in turn, more appealing valuations," she said. Outside of corporate bonds, Vanguard sees opportunities right now in mortgage-backed securities. While spreads in the bond market have fallen near some of its lowest levels in decades, MBS spreads have been higher than relative to history — which makes their pricing closer to fair value, Cunniffe said. "There are several pockets of the market that offer attractive return potential with more limited prepayment risk, including agency-backed collateralized mortgage obligations (CMOs), agency-backed specified pools, agency commercial mortgage-backed securities, and non-agency but still high-quality AAA-rated residential mortgage-backed securities (RMBS)," she said. The Vanguard Mortgage-Backed Securities ETF (VMBS) has a 30-day SEC yield of 4.21% and a 0.03% expense ratio. VMBS YTD mountain Vanguard Mortgage-Backed Securities ETF year to date. Lastly, Vanguard is overweight asset-backed securities (ABS), preferring higher-quality issuers and sectors that have proven track records though multiple economic cycles. "Structured products, especially ABS, have lagged the spread retracement we have seen in corporate bonds following the recent tariff-related volatility," Cunniffe said. "This, along with continued higher levels of new ABS issuance, have created an attractive relative value opportunity in ABS."
Irish Independent
17-07-2025
- Business
- Irish Independent
EU Commission warns Ireland of court action and fines over wind, water and methane failures
In a notice delivered on Thursday, the Commission said Ireland had failed to comply with regulations requiring planning procedures for renewable energy developments to be simplified and made faster. This would include setting clear time limits for permit-granting procedures targeted to specific technologies or types of projects. It would also mean referring all projects to a single applications body – In Ireland's case, An Coimisiún Pleanála - whereas currently some go through local authority planning departments. The regulations also require adoption of the 'presumption that renewable energy projects and the related grid infrastructure are of overriding public interest'. This would make such projects harder to object to because of personal or localised concerns. The regulations were due to be written into Irish law, or 'transposed', by July 1 but Ireland, along with Portugal and Latvia, missed the deadline. The warning gives the Government two months to respond and complete the transposition. 'Otherwise, the Commission may decide to refer the cases to the Court of Justice of the European Union with a request to impose financial sanctions,' it says. The warning comes the day after wind energy representatives warned politicians that no offshore wind projects would be complete by 2030 despite a Government target of having 5 gigawatts of offshore wind energy capacity [almost as much as the entire country uses on an average day] by then. Noel Cunniffe, chief executive of Wind Energy Ireland (WEI), told the Oireachtas Climate Committee that, at best, one of the five offshore wind projects currently in planning would be built by late 2030 but 2031 or 2032 was more likely. ADVERTISEMENT Mr Cunniffe said hold-ups in planning were a key obstacle, with state agencies not sufficiently resourced to deal with such complex planning applications. Responding to the Commission's warning, WEI said: 'To get clean, affordable, power to Irish families we need to be taking full advantage of changes in EU law designed to accelerate the development of wind power. 'While transposing this legislation is complicated, it is frustrating that it is taking so long and if this intervention from the EU Commission can help to speed up the process it is very welcome.' The Commission also notified the Government that it faces infringement proceedings for failing to properly transpose the EU's Drinking Water Directive. The directive was due to take effect by January 2023 but Ireland is accused of falling short on the regulations governing how temporary restrictions on water consumption are managed when contamination issues or concerns arise. Ireland also has two months to 'address the shortcomings'. In a third warning, the Commission told the Government it must comply with new regulations requiring improved measuring and reporting of methane emissions. Ireland was to provide details of which public authority would take charge of implementing the rules last February but has not done so.
Irish Examiner
14-07-2025
- Business
- Irish Examiner
Irish wind farms see record June with share of electricity rising to 30%
The share of electricity demand met by Irish wind farms rose slightly last month, growing to 30% in June. The monthly report from Wind Energy Ireland also shows that the demand for electricity during June increased marginally from 3,019 gigawatt-hours (GWh) to 3,151 GWh in the same month last year. Noel Cunniffe, CEO of Wind Energy Ireland, said: 'Our members provided nearly a third of Ireland's electricity during the first half of 2025, and last month was a particularly strong June for renewable energy generation. 'If we can accelerate the delivery of new wind and solar farms, we can continue to reduce our reliance on imported fossil fuels and put money back in people's pockets.' The report confirms that wind energy generated 939 GWh in June, up from 771 GWh during the same month last year. The average wholesale price of electricity per megawatt hour dropped for the fifth month in a row to €95.21, the report found, marking the first time average wholesale prices have dropped under €100 so far this year and the lowest since April 2024. On the days with the most wind power, the average cost of a megawatt-hour of electricity last month was €67.15, but this rose to €115.06 on days when fossil fuels were almost entirely relied on. 'Affordability is critically important to Irish families and businesses," Mr Cunniffe added. 'Every time a wind turbine or a set of solar panels is generating electricity, it is pushing down wholesale electricity prices and increasing our supply of clean energy.' Based on data provided by Green Collective, Kerry wind farms provided more electricity than any other county last month, with 105 GWh of power, around 11% of the country's wind energy. This was followed by Cork (83 GWh), then Mayo (65 GWh), Galway (64 GWh) and Offaly (61 GWh). 'Last year, wind farms like those in Kerry, Cork and Mayo helped Ireland save more than €1.2bn on gas spending," said Mr Cunniffe. 'Rather than importing hundreds of millions of euros of gas, Irish wind farms ensured money stayed where it belongs, at home, supporting Irish workers and businesses.' 'To meet the needs of our growing economy, we need to accelerate the delivery of new wind farms, and we are committed to working with the Government to help make this happen.'
Irish Examiner
31-05-2025
- Business
- Irish Examiner
Public support for wind energy is fuelling optimism
As one of the country's greatest natural resources, wind energy is being backed by four out of five Irish people. A new national survey by Wind Energy Ireland found that 80% of the public support wind energy development, with 62% backing a wind farm in their local area — which marks a steady increase in support for Ireland's leading renewable resource. The survey found that more affordable electricity, reducing carbon emissions and positive environmental impacts were the driving factors of support. Wind energy's role in supporting Irish energy independence was also a leading motivator of public backing. 'Irish people are hugely supportive of wind energy and know it is the leading solution to rising energy costs and the climate emergency,' said Noel Cunniffe, CEO of Wind Energy Ireland. 'Wind power is already helping to reduce electricity prices, cut carbon emissions, and create jobs in communities across the country. "With public support stronger than ever, we need to accelerate investment in grid infrastructure and skills to maximise the benefits for families, businesses and the environment." The report also found that 75% of those surveyed support offshore wind energy, with 82% recognising its role in securing Ireland's energy supply. 'Offshore wind represents an enormous opportunity for Ireland — it can be the basis of our national energy independence,' added Mr Cunniffe. 'Research has shown that Ireland's offshore wind farms could generate €38 billion for the Irish economy by 2050 if we can unlock its potential. "This survey proves we have the support of the Irish people but they want to see more and faster delivery. The Government needs to identify new sites for offshore wind energy projects around our coasts and reinforce the electricity grid to accommodate the enormous clean power these wind farms can produce.'
Irish Examiner
06-05-2025
- Business
- Irish Examiner
Kerry and Cork tops as wind farms generate 35% of Irish electricity
Wind farms generated 35% of Ireland's electricity over the first four months of 2025, according to industry body Wind Energy Ireland. Average wholesale power prices fell for the third month in a row in April. The average wholesale cost of electricity has fallen from €167.51 in January to €111.11 in April, though this remains higher than prices for the same period last year. On days in April with the most wind power the average cost of a megawatt-hour of electricity was €101.33 but this rose to €124.20 on days when we relied almost entirely on fossil fuels. Demand for electricity during April 2025 fell marginally to 3,307 gigawatt-hours (GWh) from 3,315 GWh in the same month last year. The share of electricity demand met by wind energy last month was 28%, and over the four months has provided more than a third of Ireland's demand, Wind Energy Ireland chief executive Noel Cunniffe said. "At a time when our economy is under threat from tariffs, energy costs and global uncertainty we have a solution, ready-made, here in Ireland. Irish wind farms have cut bills by almost €1.7bn since 2020, that's around €320 per person," said Mr Cunniffe. Mr Cunniffe said Ireland spends €1m every hour importing fossil fuels, and estimated that tripling our onshore wind capacity would drive costs down. "Onshore wind energy is Ireland's most affordable source of new electricity. The more wind energy that we can develop, the less we rely on imported fossils fuels, and the better protected Irish families and businesses are from a volatile fossil fuel market," he said. Data from Green Collective showed Kerry wind farms provided most electricity in April with 111 GWh of power, around 12 per cent of the country's wind energy, followed by Cork (91 GWh), then Galway (63 GWh), Mayo (62 GWh), and Tyrone (59 GWh). Earlier this month, minister for climate, environment, energy, and transport Darragh O'Brien announced that work has started on a new national map to identify locations where future wind farms can be national Designated Maritime Area Plan (DMAP) for offshore wind will be developed by the Department of the Environment, Climate and Communications and will involve extensive data-gathering and public consultation. It is due to be completed by the end of 2027. In April, a study by planning and environmental consultancy MKO commissioned by Wind Energy Ireland calculated that Ireland's capacity for further onshore wind development could triple.
