After years of policy-driven markets, fundamental credit analysis may finally be having a renaissance.
While economic uncertainty remains, higher dispersion and more volatile market conditions are creating greater differentiation among issuers. This environment rewards deep research, patience and discipline — particularly when it comes to identifying issuers with robust balance sheets, healthy cash flows and effective management teams.
It's not about chasing yield. Rather, it's about assessing the fundamentals and being compensated appropriately for taking risk. Certain sectors may offer value — but security selection is key, as broad-based sector bets may overlook significant differences between companies.
For investors with a long-term horizon, this could be the moment for credit selection to add meaningful value — and for fundamental bond analysis to take centre stage once again.
Read the full article to explore how credit research could be undergoing a renaissance.
