Deep Dive: Timing is important for credit selection

Areas of relative value remain

Richard Stutley, portfolio manager at Momentum Global Investment Management, dives into the fixed income market.

Today, global investment grade and high-yield credit spreads are tighter than pre-Covid levels. Dollar-denominated emerging market debt looks better value with spreads still above pre-Covid levels. We see a significant upgrade cycle underway within high-yield credit, with over four times as many upgrades as downgrades, a ratio that is far higher than at any point over the last decade. Bond Vigilantes: Key themes for global bond market in Q4 Bonds remain expensive today, with yields across the ratings spectrum having tracked core rates lower. While core rates have lifted off their l...