Alternatives Private credit quarterly roundup: Liberation Day market responses
Experts from Invesco's bank loan, direct lending and distressed credit teams to share their views from the second quarter of 2025.
9 June 2025
Introducing the Invesco Global Investment Grade Corporate Bond Fund
A globally diversified corporate bond fund, delivering income and capital growth opportunities.
See all product detailsA world of opportunity
The fund’s truly global approach increases the opportunity set available versus a regionally-focused strategy. Based on research, the team seeks to identify structural and tactical themes which drive credit markets to achieve compelling risk-adjusted returns. As well as benefitting from no geographical constraints, we are free to allocate up to 20% of the fund to high yield bonds (no lower than BB at purchase), if the macroeconomic and issuer-specific circumstances look attractive. We typically use this allowance to invest down the capital structure in high yield bonds that are issued by investment grade companies.
Large opportunity set
The fund offers a globally diversified approach to investment grade corporate bond investing.
Theme based philosophy
Themes drive over- and underweights across regions, sectors and capital structure versus the benchmark.
Deep and experienced team
Invesco Fixed Income is comprised of 180+ investment professionals averaging 18 years in the industry and 12 years with Invesco.
Why this fund?
We focus on investment grade corporate bonds, issued by companies that are highly solvent with strong balance sheets. The default risk on these sorts of securities is typically low, with defaults very rare for investment grade issuers.
Within our portfolios, we invest across a broad range of sectors and geographies. This helps ensure good diversification.
Access the Invesco Global Investment Grade Corporate Bond Fund product page to view KIDs/KIIDs and factsheets.
The investment concerns the acquisition of units in a fund and not the underlying asset. The fund is actively managed. It is not managed in reference to a benchmark.
Unlike traditional corporate bond managers, we don’t just focus on market timing and security selection. Instead, we go further. We identify the big themes driving economies and use this analysis to help drive our issuer selection. These themes could include things like:
- Decarbonisation/net zero transition
- The impact of Russia’s war on the energy and utilities sectors
- The transition of global economies from stagflation to stagnation
- And so on…
We also implement “macro overlays” to manage the overall risk of the fund through the cycle. This involves using derivatives, which help reduce transaction costs compared to trading in and out of corporate bonds.
Any investment decision should take into account all the characteristics of the fund as described in the legal documents. For sustainability related aspects, please refer to www.invescomanagementcompany.lu.
Our approach to ESG is rooted in a belief that evaluating ESG criteria leads to better long-term risk-adjusted returns. Our credit analysts are tasked with understanding the ESG drivers for the companies they cover and conducting ESG-based analysis along with their fundamental financial analysis.
We also work closely with Invesco’s global ESG team, which coordinates engagement activity across the firm and provides additional support, data and analysis.
Explore the team’s latest insights
Fixed Income Global Fixed Income Strategy Monthly Report | May 2025
We speak with IFI portfolio managers about the factors driving US investment grade and how they are navigating the current fixed income environment.
4 June 2025
Defined contribution Rethinking retirement: How Bond Income Plus Limited could fit the new retirement landscape
Discover how Bond Income Plus can support flexible retirement planning in the UK’s evolving pension landscape. Learn how retirees are adapting post-pension freedoms and managing income sustainability.
30 May 2025
Monthly update
Find out more about our performance and read the latest market commentary.
Meet the team
Lyndon Man and Luke Greenwood have led the management of the fund since 2013, with Michael Booth and Matthew Henly joining in 2016 and 2021 respectively. Lyndon and Luke have a combined 50+ years of industry experience and have navigated a broad range of economic cycles. They draw on the resources of Invesco’s global fixed income platform. The platform is made up of over 180 investment professionals, averaging 18 years of industry experience and 12 years with Invesco.
I believe our thematic approach to investing will be key to delivering attractive risk-adjusted returns going forward.
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FAQs
The term “investment grade credit” is used to describe corporate bonds that have been issued by high quality companies. The three main rating agencies use slightly different definitions. Moody’s defines investment grade securities as having a rating of Baa3 or higher. Meanwhile, Standard & Poor’s and Fitch define it as BBB- or higher.
Investment grade corporate bonds can play an important role as income generators in investor portfolios. This made them popular with investors in the years following the global financial crisis when the world lived through a sustained period of low yields, or even negative yields on government debt.
They can also be good diversifiers. They represent a large portfolio of the global investment universe, which means they allow investors to gain exposure to a broad range of economic sectors and geographies. Furthermore, they typically exhibit significantly lower price volatility than equities.
When the economy takes a downturn, the risk that companies will be unable to meet their financial obligations increases. However, it is worth noting that defaults have historically been very low for IG credit. Even between 2008 and 2009, the default rate peaked at only 0.3-0.4% of the universe. The threat of credit downgrades is more common, but can be mitigated with thorough credit analysis.
When the economy takes a downturn, high quality fixed income assets (government bonds and investment grade credit) tend to outperform more volatile/riskier parts of the market. This is partly because, when markets throw up challenges, many investors prefer relatively “safer” assets, which are able to better navigate periods of slowing growth. IG credit investors can benefit from these moves.
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