With around half of the investment grade market rated BBB, we apply high yield-style analysis to potentially attractive investment grade rated credits. This enables us to identify opportunities that may have been mispriced by the market, which we believe are solid credits that offer upside potential.
We have managed investment grade credit portfolios since 2003 and our strategies offer exposure to global markets. Most of these include a high yield component of varying magnitude depending on the risk profile, and we define these as crossover strategies. Combining investment grade and high yield may enhance returns whilst reducing volatility, thanks to the offsetting nature of these two sub-asset classes. This combination also allows us to take advantage of opportunities created by companies moving between the two rating categories, through rising stars and fallen angels.