Why now is the time to increase exposure to alternatives

clock
Rupert Silver of Credo Wealth
Image:

Rupert Silver of Credo Wealth

As multi-asset managers, we have historically been overweight to corporate bonds and specifically the financial sector ever since the Global Financial Crisis.

However, as global interest rates remain at or around all-time lows, record inflows into the asset class have been fuelled by global monetary policy easing as central bankers have cut interest rates a total of 66 times in the last year, according to J.P. Morgan. This has led to yields tending towards all-time lows and, incredibly, approximately a third of investment-grade debt trading at negative yields. Subsequently there are becoming ever more limited opportunities to earn an attractive absolute return from fixed income without taking significant credit risk.   In response to thi...

To continue reading this article...

Join Investment Week

  • Unlimited access to real-time news, analysis and opinion from the investment industry, including the Sustainable Hub covering fund news from the ESG space
  • Get ahead of regulatory and technological changes affecting fund management
  • Important and breaking news stories selected by the editors delivered straight to your inbox each day
  • Weekly members-only newsletter with exclusive opinion pieces from leading industry experts
  • Be the first to hear about our extensive events schedule and awards programmes

Join now

 

Already an Investment Week
member?

Login

More on Markets

There are concerns that the windfall tax will discourage investment into energy in the UK
UK

No energy company 'in their right mind' would set up in the UK now

Windfall tax may dampen energy sentiment

clock 01 July 2022 • 4 min read
Small-caps look to “boost their future cash surplus” during recession.
UK

Miton's Gervais Williams: Recession may favour 'immature businesses'

FTSE Small Cap down 15% year-to-date

clock 29 June 2022 • 2 min read
Industry Voice: PIMCO Secular Outlook

Industry Voice: PIMCO Secular Outlook

Reaching for Resilience

PIMCO
clock 28 June 2022 • 2 min read
Trustpilot