Credit investing in a low spread environment

Investment

Credit markets remain tight so schemes must look beyond mainstream assets to boost returns or stay ready to act when conditions shift.

Fund finance and Private Investment Grade Lending may be suitable for the former, with both options providing material yield enhancement relative to traditional corporate bonds.

Separately, establishing a corporate bond purchasing framework or adopting a dislocation strategy can help schemes to take advantage when markets move quickly. We also explore how schemes with credit-heavy portfolios can dig deeper to better understand credit risks.

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