In this episode of Amplified, Eoin Murray, Head of Investment and Andrey Kuznetsov, Senior Credit Portfolio Manager, take a look at the new decade for fixed income markets.
Kuznetsov explains: “we are faced with an entirely new landscape. If we look back over the past 10/20 years it has become increasingly global and diverse both in terms of country split but also in terms of securities, sectors, currencies and more.” Kuznetsov delves into this further in his piece on a flexible approach to all-weather credit allocation.
Kuznetsov also highlights that over the past 5 years we have experienced a significant rise of passive investing within fixed income and addresses that we are increasingly facing a low rate environment.
Whilst commenting on the dominance of ESG factors in the fixed income market, he remarks: “if you look at the past 2 years, all of the participants in the market integrate ESG in one way or another and it is an increasingly important factor when looking at both the fundamentals of a company and pricing the best security within a capital structure to invest in.” We look into this in more detail in our piece on the six drivers of conviction in credit investing.
For Kuznetsov, “ESG integration will be a must” and “you cannot ignore ESG going forward. It needs to be one of the factors when you consider an investment opportunity.”
To find out more, tune in to Amplified.
See our podcast guide on how to download our podcasts on your phone.