Head of Global Credit Strategies of Global Investment Grade and Emerging Markets
Michael Hyman
We believe our multi-sector credit strategy provides the dynamic approach necessary to generate returns in the current market landscape. We build a diversified portfolio that can take advantage of market dislocations to aim for high yield-like returns at comparatively lower risk levels.
The Invesco Multi Sector Credit strategy applies a discretionary approach across core credit asset classes to pursue attractive strategic beta, tactical beta, and security selection alphas opportunities that can potentially enhance overall income and total returns.
The Invesco Multi Sector Credit strategy looks to achieve a favourable total return over a full market cycle. We construct the strategy with the aim of generating a level of return approaching that of the high yield bond market. At the same time, we aim for volatility and a correlation to equities that is lower than that of high yield bonds.
Our strategy applies a disciplined, research-intensive process that combines top-down and bottom-up analysis. With changing market conditions, this allows the investment team to actively implement a carefully constructed strategic allocation. This is diversified across four global credit sectors:
This strategic asset allocation forms the strategy‘s foundation, assigning equal amounts of risk to each sector (risk parity).
The investment team also employs well-defined tactical allocation ranges in order to target additional risk-adjusted performance. This allows the team to position the portfolio opportunistically as markets evolve.
We are also able to seek additional returns through fundamentally based security selection. These individual holdings within each sector focus on the team’s highest conviction ideas.
The Invesco Fixed Income team has been actively investing in fixed income markets since 1971 and has dedicated teams working in Atlanta, Chicago, Hong Kong, London, Louisville, New York and Tokyo. The team benefits from 223 fixed income investment professionals in 14 locations worldwide.
We leverage our robust single sector capabilities, global credit and macro research platforms, and interconnectivity to provide multi-sector solutions to clients worldwide. Through global standards across credit and risk, Invesco's multi-sector team develops an integrated strategy based on market direction, risk positioning and asset allocation.
Our global presence allows us to look for pricing advantages between regions for similar or identical credit risk, advantages which we aim to pass on to our clients through enhanced performance.
Our team believes that a dynamic, multi-sector approach to credit investing is best adapted to capturing potential value and opportunity, especially in today’s complex market landscape.
The multi-sector team has three fund managers supported by an experienced team of four sector portfolio managers (High Yield, Bank Loans, Emerging Markets, Global IG) and Invesco Fixed Income’s extensive team of global research analysts.
Monthly fixed income update
August was another positive month for fixed income markets, with Fed Chairman Powell largely confirming that US rates would be cut in September. Read our latest thoughts on how fixed income markets performed during the month and what we think you should be looking out for in the near term.
Global Fixed Income Strategy Monthly Report
In our regularly updated macroeconomic analysis we offer an outlook for interest rates and currencies – and look at which fixed income assets are favoured across a range of market environments.
Emerging market local debt | Monthly macro insights
Catch up on monthly fixed income insights from our emerging market local debt team.
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Data as at January 2020, unless otherwise stated. By accepting this document, you consent to communicate with us in English, unless you inform us otherwise. Where individuals or the business have expressed opinions, they are based on current market conditions, they may differ from those of other investment professionals and are subject to change without notice.