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Asset classes

Credit

We manage £60 billion* in credit (corporate bonds) on behalf of our clients. With credit specialists in Europe, North America and Asia, we occupy a global vantage point from which to seek value in the world’s credit markets.

  • £60 billion AUM in credit managed by teams in Europe, North America and Asia
  • Wide range of strategies, from investment grade to absolute return
  • Large teams with diverse skills
  • Investment specialists on three continents
  • Global perspectives, united by a common research platform.
We believe it is no longer enough just to focus on investment fundamentals. Credit managers now need to fully understand the risks they are taking.

Fundamentals and risk management

If anyone doubted that the world’s credit markets are inefficient and offer substantial opportunities for active managers, the past few years must have been an eye-opener.

In today’s markets, active management has come into its own. But a pure focus on fundamentals is no longer enough.

Greater volatility and spread dispersion mean that credit managers need a comprehensive understanding of the risks they are taking. And with liquidity low, it’s best to have a clear, practical exit strategy. Our ability to perform live risk analysis is a key strength of our credit investment process.

Diverse skills, diverse strategies

Getting it right in today’s unforgiving markets calls for a wider range of skills and knowledge.

We have one of the largest credit teams in the investment management industry. Our portfolio managers, credit analysts and traders bring together diverse experience from across the financial services industry.

This gives us the variety of skills needed to deliver reliable risk-adjusted returns, and offer strategies across the credit opportunity set, from investment grade to high yield and absolute return.

Credit 2013 - time for absolute return


 

Mark Wauton, Head of Credit: "2012 was a rewarding year for credit investors, with returns of around 11% from global investment-grade credit and 19% from global high yield. The outlook for credit markets remains healthy. Companies still have large amounts of cash on their balance sheets, projected default rates remain low, and the appetite for new issuance shows no signs of diminishing."

 

* Data as at 30 September 2011.