Bonds are now offering income opportunities not seen since the global financial crisis. And investors aren’t having to take on too much credit risk to gain exposure to these, with companies having entered this period with reasonable balance sheet strength.
Against this backdrop, the asset class looks particularly attractive.
This is an investment grade credit portfolio, but we have the flexibility to allocate up to 30% to high yield securities and government bonds. This allows us to take on more risk when the opportunities look attractive, or reduce risk in periods where we don’t feel it is justified.
We also have no duration restrictions, which means we can mitigate risk or take advantage of opportunities, depending on the prevailing interest rate environment.
The investment concerns the acquisition of units in an actively managed fund and not in a given underlying asset.
For complete information on risks, please refer to the legal documents. 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. Debt instruments are exposed to credit risk which is the ability of the borrower to repay the interest and capital on the redemption date. Changes in interest rates will result in fluctuations in the value of the strategy. The strategy uses derivatives (complex instruments) for investment purposes, which may result in the strategy being significantly leveraged and may result in large fluctuations in the value of the strategy. The strategy may invest in distressed securities which carry a significant risk of capital loss. The strategy may invest in contingent convertible bonds which may result in significant risk of capital loss based on certain trigger events.
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.
Monthly fixed income update
June saw a resurgence in political risks with a snap election called in France, the upcoming general election for the UK, and the first televised debate between Trump and Biden ahead of the presidential election in the US. 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.
Yields maintain record highs and offer positive relative value
Invesco’s bank loans, direct lending and distressed credit teams to share their views as the second quarter of 2024 wraps up.
Julien Eberhardt and Tom Hemmant are responsible for managing the strategy, supported by the rest of Invesco‘s Fixed Income Team. Together, the two fund managers have a combined 38 years of industry experience.
Julien Eberhardt, Co-Strategy Manager, Invesco Euro Corporate Bond StrategyBecause of the flexibility we have in our mandate and the credit research resources in the team, we believe the strategy can deliver attractive risk-adjusted returns from this vital income asset class.
Let us know using this form and one of our specialist team will quickly get back to you.
Data as at 30.11.2023, unless otherwise stated. This is marketing material and not financial advice. It is not intended as a recommendation to buy or sell 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. Views and opinions are based on current market conditions and are subject to change.
EMEA3265738/2023
