Invest in Credit

Where opportunity meets stability

Why invest in Credit?

With a stark repricing in credit, valuations are now highly compelling and present an attractive entry point for investors. Yields and spreads have risen significantly, allowing credit to offer meaningful income opportunities and the potential for capital gains should decline over time. For those concerned about rising interest rates and inflation, credit can provide a better cushion than some longer-duration asset classes like government bonds¹.


Investing in credit offers a unique opportunity to diversify your investment portfolio beyond equities. traditional asset classes like stocks and bonds. Not only does credit investments encompass a wide range of assets, including corporate bonds, municipal bonds, loans, and other fixed-income securities, it also offers opportunities in varying geographies such as Global, US, Europe and Asia¹. By adding credit investments to your portfolio, you can potentially reduce overall risk and enhance returns by spreading your investment across different issuers and sectors.

Steady income generation

Credit investments are often favoured by income-oriented investors due to their ability to generate steady cash flows. When you invest in credit, you typically receive periodic interest payments from the issuer, providing a consistent income stream. This can be particularly attractive for investors seeking regular income to fund their retirement, cover living expenses, or meet other financial goals.

Capital preservation

Credit investments, particularly those with higher credit ratings, may can offer stronger a level of capital preservation compared to riskier assets. While no investment is entirely risk-free, credit investments backed by reliable issuers and supported by rigorous credit analysis can provide a measure of stability and help protect your investment principal. This can be especially beneficial during times of market volatility or economic uncertainty.

Potential for yield enhancement

Within the credit space, there are opportunities to seek higher yields by investing in riskier credit instruments, such as high-yield bonds or emerging market debt¹. These investments can potentially offer higher income generation, although they come with increased risk. Careful selection and analysis are crucial to balance risk and reward effectively.

Why Schroders?

In an environment of high market volatility, managing risk is crucial. This means managers need to focus as closely on managing downside risk as they do on credit selection. At Schroders, we use an innovative forward-looking, themes-based credit selection process to guide in-depth proprietary credit research and differentiate between credit issuers globally. We also use proprietary quantitative tools to integrate risk management through every step of the investment process, with the aim of capturing healthy yields while mitigating downside risk

Expertise and track record

When you choose to invest with Schroders, you gain access to our team of experienced investment professionals who have a proven track record in managing credit portfolios. With a global platform of 40+ credit analysts and more than 50 years of experience running fixed income, Schroders has a strong track record of making its clients’ money work harder across all phases of the market cycle.

Rigorous research and risk management

Schroders’ investment process revolves around rigorous forward-looking research, fundamental analysis, and disciplined risk management practices. We conduct in-depth analysis of issuers, assess their credit quality, evaluate the sustainability of cash flows and interest payments, and consider macroeconomic factors to make informed investment decisions. Our proactive risk management approach aims to protect your capital while maximizing income potential.

Comprehensive range of credit solutions

At Schroders, we offer a comprehensive range of credit investment solutions tailored to meet the diverse needs of investors. Whether you prioritise income generation, capital preservation, or a balance of both, we provide a wide array of options designed to suit different risk appetites, investment goals, regional preferences, and time horizons.

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¹Any reference to sectors/countries/stocks/securities are for illustrative purposes only and not a recommendation to buy or sell any financial instrument/securities or adopt any investment strategy.

²The fund has environmental and/or social characteristics within the meaning of Article 8 Regulation (EU) 2019/2088 on Sustainability related Disclosure in the Financial Services Sector (the SFDR). For information on sustainability-related aspects of this fund please go to

Past performance is not a guide to future performance and may not be repeated.

This advertisement has not been reviewed by the Monetary Authority of Singapore. This is prepared by Schroders for information and general circulation only and the opinions expressed are subject to change without notice. It does not constitute an offer or solicitation to deal in shares of any Schroders fund (each a ‘Fund’) and does not have regard to the specific investment objectives, financial situation or the particular needs of any specific person who may receive this. Investors may wish to seek advice from a financial adviser before purchasing shares of any Fund. In the event that the investor chooses not to seek advice from a financial adviser, he should consider whether the relevant Fund in question is suitable for him. Past performance of a Fund or the manager, and any economic and market trends or forecast, are not necessarily indicative of the future or likely performance of the Fund or the manager. The value of shares in a Fund, and the income accruing to the shares, if any, from the Fund, may fall as well as rise. Investment in shares of a Fund involves risks, including the possible loss of the principal amount invested. A Fund may from time to time be concurrently offered to institutional and/or accredited investors and certain other persons pursuant to Sections 304 and/or 305 of the Securities and Futures Act 2001 (the ‘Relevant Persons’), and in such case, investors should note that certain share classes of such Funds may only be made available to the Relevant Persons and not to retail investors. Retail investors should refer to the Singapore prospectus of the relevant Fund, available from Schroder Investment Management (Singapore) Ltd or its distributors, for the list of share classes of a Fund which are available to retail investors. Investors should read the Singapore prospectus before deciding to subscribe for or purchase shares in any Fund. A Fund may carry a sales charge of up to 5%.