Why credit markets offer greater control during disruption

March 4, 2026

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As investors reassess business model durability, capital intensity and long-term monetisation, market narratives have become more volatile and polarised. History suggests such periods are prone to overshooting, both on the up and downside. It is a familiar pattern. Recent years have seen indiscriminate sell-offs across airlines during COVID, real estate amid rising rates and autos during cyclical downturns. Each episode created opportunity for investors able to distinguish temporary sentiment-driven dislocation from genuine deterioration in credit quality.

With one of the largest and most experienced credit teams, we approach these situations with perspective. 

Our global analyst team evaluates liquidity, leverage, covenant protection and earnings resilience, allowing us to separate noise from fundamentals. We carry out deep analysis before we invest and re-underwrite our view while invested. We know the companies in which we are invested. For us, a headline does not induce panic nor a blind sense of sell first to alleviate pressure. That only comes when you do not know what you own.

Moreover, credit markets offer structural advantages. Unlike equity indices, which can become highly concentrated around dominant themes, credit investors can adjust exposure across maturities and credit seniority. This flexibility allows us to calibrate risk as appropriate, focus on shorter-dated exposures with greater visibility, and maintain portfolio resilience.

For example, we are heavily underweight in AI but recognize that it is becoming embedded in existing products to enhance functionality and deepen customer engagement. Businesses with mission-critical applications, high switching costs and entrenched workflows are unlikely to be displaced quickly. For well-capitalised incumbents, AI may reinforce competitive positioning rather than undermine it.

Our technology exposure is measured and focused primarily on shorter-dated bonds where we have strong visibility on cash flows and creditworthiness. Every position is grounded in detailed bottom-up analysis of resilience, liquidity and refinancing capacity.

This discipline underpins our role as long-term partners, managing risk thoughtfully and capturing opportunity without taking uncompensated risk during periods of market disruption.

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