Opinions

Against a backdrop of economic recovery but the prospect of rising interest rates, where can credit investors look for yield while protecting themselves from interest rate risk?

While risks remain, we expect the global economic momentum to continue into 2022, creating a potentially positive backdrop for credit.

As interest rates trend higher, should investors consider an allocation to syndicated loans?

Are debt, digital and climate transforming central banking and the broader economy?

We believe the calm and measured character of the ox is likely to be reflected in China’s economic and political stance in 2021, which could provide opportunities for investors

During 2020, governments took measures to address the immediate economic consequences of the pandemic. Will we see these measures be progressively phased out in 2021, and will public finance start to consolidate?

A brighter economic future is reasonably expected in 2021, but active and smart management will be required to navigate credit markets with tighter valuations.

We have asked six of our portfolio managers to comment on past and current challenges, and to share their thoughts on what to expect next.

Syndicated Loans in a Recessionary Environment

Potential Opportunities in Challenged Markets

The rapid global spread of COVID-19 and the subsequent lockdown measures have resulted in a global humanitarian and working capital crisis rolled into one event.

The rapid global spread of COVID-19 and the subsequent lockdown measures have resulted in a global humanitarian and working capital crisis rolled into one event.

West Texas Intermediate (WTI) oil fell to a record low last week as demand collapsed in the wake of the COVID-19 lock-down and the Saudi Arabia/Russia price war.

The Eurogroup met on the evening of Tuesday, April 7th, and after a night-long negotiation which didn’t lead to an agreement, reconvened on Thursday, April 9th. Eventually, the gridlock was broken and a common position on a comprehensive package of measures was reached.

The renewed debate of debt mutualisation threatens to create new cracks on the European project.

Where might investors find yield, protection from volatility and investment opportunities across the credit cycle?

How can retail investors and the real economy benefit from a changing regulatory environment?

Please click to view our Corporate Credit Outlook for 2020 by Director of Product & Investment Strategy, Erick Muller.

Please click to view our latest Macro Outlook from Director of Product & Investment Strategy, Erick Muller.

Evolving policy initiatives are broadening the scope for small and medium-sized enterprises to access financing

Please click to view our latest Macro Outlook from Director of Product & Investment Strategy, Erick Muller.

Against a backdrop of increasing global uncertainty, many are concerned about an economic scenario that puts widespread pressure on credit ratings.

Will upcoming European elections impact broader market sentiment?

Please click to view our latest Macro Outlook from Director of Product & Investment Strategy, Erick Muller.

Recent research trips to India and Indonesia provide valuable insight ahead of upcoming elections

How might investors access the benefits of private debt whilst avoiding the restraints incurred by traditionally illiquid assets?

Underlying fundamentals remain solid despite recent price weakness

What key themes are likely to impact socio-political and economic developments?

Private Debt Portfolio Managers Eric Green and Jeff Youle reiterate their conviction in the asset class

As increasing macroeconomic and geopolitical risks lead to rising volatility, where do we see the main opportunities and challenges for credit markets in 2019?

A segment of the investment grade market has leverage multiples more in-line with high yield.

Seeking stable returns in most market conditions.

Can socially responsible investing enhance returns in corporate credit?

With growing pressures in the direct lending market, is the asset class still a viable alternative for investors seeking higher yields?

Recent weakness in EM belies underlying fundamental strength in a maturing asset class

As volatility rises and the beta rally draws to a close, how can investors seek to strike a balance between return maximisation and drawdown protection?

How can credit investors seek to have the right exposure at the right time to maximise their return potential, minimise risk and dampen volatility?

As base rates move towards more normalised levels, where can fixed income investors gain protection from rising rates and source attractive returns?

With deteriorating fundamentals in the sovereign universe, should investors consider increasing their allocation into corporates?

What does 2018 have in store for corporate credit markets?

What does the re-election of Xi Jinping mean for China’s political and economic outlook?

Why are US high yield spreads tighter this year when the market has experienced net mutual fund outflows year-to-date?

Declining credit quality in the investment grade corporate universe means the need for bottom-up credit research is now more important than ever.

An allocation into direct lending can offer insurers with a diversified source of higher, less volatile returns over a longer-term time horizon.