Speaking directly from home, Tom Ross, Credit Portfolio Manager, explains how in an unprecedented crisis the Corporate Credit Team are remaining true to their process within high yield investing but recognise that some things need to be done differently.

  Key takeaways

  • The team are sticking to their tried and tested investment process but are upping communication so that portfolio managers and analysts can more swiftly assess the changing environment.
  • They have adapted their trading to take into account shifting liquidity, expanding the number of smaller line items to diversify execution risk and maintain desired risk profiles across the portfolios.
  • While currently cautious the team are seeing deep value emerging within high yield and believe that fallen angels can offer selective opportunities for both high yield and investment grade investors.

Notes: 

This video was filmed in late March 2020.

Beta: The sensitivity of the portfolio to market movements.

DTS: Duration times spread. This is a measure of expected credit volatility in portfolios.