The scope of the global corporate bond universe can be a daunting prospect; identifying key investment themes is one way to navigate this landscape and make good investment decisions.
Solid credit fundamentals, a moderate uptick in global economic growth with limited inflationary pressure and a favourable supply-demand balance all point to another good year for high yield bonds.
Global corporate bond valuations are elevated and insufficient to compensate for risk, but there will continue to be selective opportunities to take high conviction positions.
In today’s complacent and expensive bond markets, an active and flexible approach is needed. We look at where the risks and opportunities lie.
Our research, which looks at episodes of rising rates since 1970, suggests income-producing assets don’t perform as investors might expect.