Hermes' Lundie: Emergence of 'haves and have nots' offers 'real value' in HY credit

Hermes' credit team updates investors

Mike Sheen
clock • 4 min read

A flight to quality in credit markets, which has seen investment grade continue to outperform high yield, will lead to an emergence of corporate 'haves and have nots' as companies struggle to obtain sponsorship, but it has created "substantially more attractive valuations" for investors, according to Hermes' head of credit Fraser Lundie.

To continue reading this article...

Join Investment Week today

  • 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 Bonds

Catastrophe bonds gain $10.2bn in net inflows but remain constrained

Catastrophe bonds gain $10.2bn in net inflows but remain constrained

Average 1.14% costs

Patrick Brusnahan
clock 05 August 2026 • 1 min read
Fidelity International's Marion Le Morhedec: The bond market's inflation blind spot

Fidelity International's Marion Le Morhedec: The bond market's inflation blind spot

Wrong conclusions

Marion Le Morhedec
clock 29 July 2026 • 4 min read
Pilot UK digital gilt issuance to take place in early 2027

Pilot UK digital gilt issuance to take place in early 2027

Partnership between HSBC and LSEG

Michael Nelson
clock 16 July 2026 • 2 min read
Trustpilot