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Back to basics: a contrarian look at cyclicals in credit markets

16 ^th July 2019

The US bull run is the country's longest on record. But we are in the latter stage of the global macroeconomic cycle and warning lights are flashing. We remain focused on corporate fundamentals, asking which high-quality cyclicals could successfully weather a slowdown.

In this issue of Spectrum, we look at basic-materials companies that have strengthened their balance sheets since the last commodity-price crash. We identify several mining and cement firms whose finances we think could remain solid if the sector weakens.

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Anna Chong

Deputy Head of Corporate Credit Research

Anna joined the international business of Federated Hermes in 2017 as a credit analyst covering basic materials and, in June 2021, became Deputy Head of Corporate Credit Research. Prior to joining the firm, she worked at JPMorgan for over four years as part of the credit risk department, where she was responsible for covering the telecoms, media & technology (TMT) industries, and had previously covered the natural resources sector and Nordic financial institutions. Anna holds a BSc (Hons) in Mathematics with Statistics from the University of Bristol and holds the Certificate in ESG Investing from the CFA UK.

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