Don’t look down

Paul Jackson. Global Head of Asset Allocation Research and András Vig. Multi Asset Strategist

Hard data suggests an unprecedented loss of economic activity in many countries. Central banks are getting markets to look ahead and to not look down. We have vertigo and prefer IG to HY.

Like you, we are struggling to gauge the depth of this downturn. We have an increasing number of data points to help understand how much economic activity is being surrendered but can only guess the shape of the recovery.

For our more in-depth assessment how e.g. the lockdown may affect US High Yield, and whether higher anticipated default rates are appropriately reflected in current yields, click here.

The value of investments and any income will fluctuate (this may partly be the result of exchange rate fluctuations) and investors may not get back the full amount invested.

Data as at 10.05.2020, unless otherwise stated. This document is marketing material and is not intended as a recommendation to invest in any particular asset class, security or strategy. Regulatory requirements that require impartiality of investment/investment strategy recommendations are therefore not applicable nor are any prohibitions to trade before publication. The information provided is for illustrative purposes only, it should not be relied upon as recommendations to buy or sell securities.

Where individuals or the business have expressed opinions, they are based on current market conditions, they may differ from those of other investment professionals, they are subject to change without notice and are not to be construed as investment advice.

Don’t look down

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