For individual investors in the UK

Global Perspectives Podcast: are we in a sweet spot for credit investing?

Jenna Barnard and John Pattullo, Co-Heads of Strategic Fixed Income, join Adam Hetts, Global Head of Portfolio Construction and Strategy, to discuss all things corporate bonds. Topics include philosophy, making the right calls in the crisis, the chances of an aggressive recovery, the prospects of higher interest rates and whether 2021 offers a sweet spot for credit investing.

Key Takeaways

  • Covid 19 had a very different impact on the credit markets than the last two economic downturns. This was a three week market liquidity crisis, not a traditional solvency crisis with accompanying defaults. Markets remained open and willing to lend to Covid impacted names, albeit at a price
  • The crisis could also be followed by a surprising recovery, with the potential for a sharp rebound by next spring or summer. In such a scenario, could 10-year government bond yields be on the rise?
  • Recent vaccine and other market friendly news, market resilience this year and signs that companies are seeking to reduce leverage and improve balance sheets, support a positive outlook on credit moving into 2021
John Pattullo

John Pattullo

Co-Head of Global Bonds | Portfolio Manager


Jenna Barnard, CFA

Jenna Barnard, CFA

Co-Head of Global Bonds | Portfolio Manager


Adam Hetts, CFA

Adam Hetts, CFA

Global Head of Portfolio Construction and Strategy


27 Nov 2020

These are the views of the author at the time of publication and may differ from the views of other individuals/teams at Janus Henderson Investors. Any securities, funds, sectors and indices mentioned within this article do not constitute or form part of any offer or solicitation to buy or sell them.

 

Past performance does not predict future returns. The value of an investment and the income from it can fall as well as rise and you may not get back the amount originally invested.

 

The information in this article does not qualify as an investment recommendation.

 

Marketing Communication.

 

Glossary

 

 

 

John Pattullo

John Pattullo

Co-Head of Global Bonds | Portfolio Manager


Jenna Barnard, CFA

Jenna Barnard, CFA

Co-Head of Global Bonds | Portfolio Manager


Adam Hetts, CFA

Adam Hetts, CFA

Global Head of Portfolio Construction and Strategy


27 Nov 2020