Why Investing in a Multi-Asset Credit Strategy Makes Sense

Kevin Kearns, Portfolio Manager and Senior Derivatives Strategist at Loomis, Sayles & Co, discusses the benefits arising from balancing interest rates and credit risk through a multi-asset credit strategy

  • In a lower global growth environment, a balanced credit approach allows for a mitigation of factor risks (lower credit quality for high yield or interest rates for Investment Grade). Credit can offer attractive opportunities vs a government strategy or a pure high yield strategy.
  • Identifying where each country as well as each industry is in its credit cycle (downturn, credit repair, recovery or expansion) and balancing its credit portfolio from a country, industry and sector (EM, high yield, bank loans, Investment Grade) perspective enables investors to seize opportunities while staying away from countries that are in late expansion and are going into downturn.
  • Loomis Sayles draws on 55 credit research analysts to construct a diversified and optimized portfolio. A well-balanced multi-asset credit strategy can lead to more consistent return patterns and add value in terms of lower drawdown management, lower volatility and diversification.
Published in June 2019

Loomis, Sayles & Company, L.P.
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This video is for informational purposes only and should not be construed as investment advice. Any economic projections or forecasts contained herein reflect subjective judgments and assumptions, and unexpected events may occur. There can be no assurance that developments will transpire as forecasted. Actual results may vary. The views and opinions expressed are as of 22 May 2019, and may change based on market and other conditions.

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