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In the first of a short video series, Fixed Income Portfolio Manager Connor Fitzgerald takes a look at what's current in credit. Given rather tight credit spread valuations, what is Connor's outlook for the next twelve months and where are the opportunities and risks now?
Credit spread valuations remain tight. While Connor still sees opportunity, especially within specific sectors and companies, he believes it makes sense to take less credit risk in this environment, focusing more on investment-grade credit rather than high yield.
Meanwhile, the economy is showing some signs of weakness, increasing the risk of a recession over the next twelve months, but, then again, could data continue to defy expectations?
In an environment of heightened geopolitical and political uncertainty, market volatility is likely. Investors could benefit, provided they are positioned to take advantage, and Connor will be paying particular attention to the trajectory of US deficit spending. Looking ahead, Connor also sees increased demand for power and the need to upgrade infrastructure as driving a potential structural growth story, which could create opportunities within the utilities and energy sectors.
Expert
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Are bond investors ready for a US industrial revolution?
Portfolio Manager Connor Fitzgerald discusses why bond investors should ready themselves for a potential US industrial revolution and shares his perspective on how to reposition portfolios for such a scenario.
Securitized credit: Normalizing, decelerating, or falling off a cliff?
Our experts offer their views on the current conditions and outlook for the securitized credit market.
Multiple authors
Rate relief: Fed cuts half point, but says “economy is strong”
Our expert explains the Fed's bold rate cut and some key takeaways for investors.
A new economic era: three reasons to revisit bonds?
Investment Director Marco Giordano explains why he believes the new economic era is creating a wide range of opportunities for research-driven bond strategies to offer investors stable income combined with downside protection and diversification.
Diving into the new world of credit
Now that spreads have tightened, some investors think it's too late to invest in credit. But this assumption could be standing in the way of earning an attractive income.
CLO equity insights: Private credit
Explore how the convergence of public and private markets is impacting CLO equity, including the unexpected benefit it has driven in recent years.
Private placements: A primer for corporate DB plans preparing to derisk
With many corporate DB plans exploring derisking opportunities, Portfolio Manager Elisabeth Perenick and Multi-Asset Strategist Amy Trainor discuss the potential role that private investment-grade credit, or private placements, could play and consider common questions about liquidity and allocation sizing.
Still waiting…Fed wants more data before cutting policy rates
Our expert dives into Fed policy following the July FMOC meeting.
Office to multifamily conversions: Implications for CMBS investors
Our experts explore the emerging trend in some US cities of converting office space into multi-family units and its implications for bond investors.
Multiple authors
Chart in Focus: Four key areas of opportunities in bonds amid Fed uncertainty
We discuss four key areas of opportunities in fixed income amid Fed uncertainty in the second half of the year.
Are US election probabilities now a critical driver of bond yields?
Our expert argues that the US election remains a critical catalyst for the bond market given the contrast between both parties as it relates to supply side policies such as trade and immigration, and to policy differences around taxation and regulation.
URL References
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