A good memory can colour your perspective of prevailing conditions so that appreciation of current valuations may be clouded by the extremes of the credit and sovereign debt crises of the last decade. We believe that prospective returns from credit have improved and Richard Ryan explains why we have been adding risk to our multi-asset credit strategies.
- Assessment of valuations has been anchored in the extremes of the credit and sovereign crises of the last decade
- Prospective returns have improved in both investment grade and high yield markets, with crossover credits favoured
- We have been adding to risk in multi-asset credit strategies but have scope for add more as value opportunities emerge