David M. Brown | Senior Portfolio Manager & Global Co-Head of Investment Grade and Multisector
Jose Pluto | Portfolio Manager
Pim van Schie | Senior Portfolio Manager
Jaina Varsani | Client Portfolio Specialist
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In April, our fixed income experts weighed in on where to hide and where to hunt in fixed income markets.
Here are five key takeaways from the webinar:
Tight spreads suggest better credit quality, not complacency. US high yield yields ~7% with historically low default rates and a market that is now majority BB-rated — carry, not spread compression, is doing the work.
Securitized credit pays a complexity premium. BBB-rated CLOs and ABS offer roughly 200bps over comparably rated corporates, allowing investors to improve credit quality without sacrificing income.
Investment-grade private placements offer a cleaner illiquidity premium. Expect 75–200bps over public IG comparables — without the credit risk of moving down the quality spectrum.
We believe emerging markets are healthier than headlines suggest. Hard currency EM bonds yield over 6%, with ~75% of the market trading at or near par; distressed risk is already being priced punitively.
The biggest risk isn't tariffs — it's sticky inflation. If central banks are forced to stay hawkish longer than expected, the pressure on consumers, housing, and commercial real estate could be more consequential than geopolitical volatility.
