Asset Allocators' Soapbox: The new world facing credit investors

With the 30-year bond bull run effectively halted, fixed income investors face a difficult future. The quantitative easing experiment is being unwound and the spectre of rate rises is upon us. Higher rates are not the only headwind, with increased volatility and a shallower pool of liquidity posing further challenges. Looking at the high yield credit sector in the post-global financial crisis period, these problems have become acute. In our view, structural shifts in valuation and liquidity fundamentals have rendered many strategies not fit for purpose, particularly those overly constrai...