During periods of heightened market volatility, we believe a strategy that looks across high yield bonds and loans in the U.S. and Europe can offer many benefits for investors.
Multi Credit Investing: Embracing the High Yield of Today
Over the past decade, the growth and expansion of the global high yield markets have transformed the way investors view the asset class. In this article, we discuss the potential benefits of considering a multi credit, “through-the-cycle” approach, which can give investors’ high yield allocation more flexibility, potentially improving their ability to capitalize on opportunities across the global high yield markets as they materialize throughout the credit cycle.
A Global Approach to High Yield Investing
In this Q&A, Barings’ heads of U.S. and European high yield investments discuss the steady growth and evolution of the global high yield markets and identify areas where they expect to see relative value opportunities going forward.
CLOs: Accessing the Opportunity
Until fairly recently, it has been difficult for private investors and their advisers to access opportunities in collateralized loan obligations (CLOs), but that situation is slowly changing. In particular, with the advent of high yield multi credit strategies, investors have a means of accessing the broader market opportunities within the high yield universe, including the potential benefits offered by CLOs.
Barings is a $304+ billion global financial services firm dedicated to meeting the evolving investment and capital needs of our clients. We build lasting partnerships that leverage our distinctive expertise across traditional and alternative asset classes to deliver innovative solutions and exceptional service. Part of MassMutual, Barings maintains a strong global presence with over 1,800 professionals and offices in 16 countries. As of December 31, 2017.