Not quite yet. Fixed Income has legs left in it, bruised and battered by one week of madness (normally summer madness).
As you would expect after such a bruising episode, we have looked deep inside ourselves to ensure that we have shed all behavioural bias and are looking at each of our major strategies with a fresh lens to ensure we are still committed to them.
As with our Equity team, we are reviewing our themes and our credits and we will soon begin to recommend changes.
However, let us stress a few key points:
- We have invested in the largest systemically important banks – please refer to the
document ‘Global Banks Revisited’ and our ‘Bank Stress Test Note’.
- We have invested in the largest systemically important insurance companies.
- We have invested in major utilities that are an essential part of the economic
framework – please refer to the ‘Overview Investment Grade’ Document.
- We have invested in global corporates that are the major employers and critical to
the wellbeing of domestic economies and, as a result, global economies – please
refer to the ‘Overview Investment Grade’ Document.
- We have not invested randomly in a swathe of high yield companies.
- We have not invested in leveraged loans.
- We have not invested in other leveraged products.
- We have not invested in local currency Emerging Market bonds.
To read the full article, please click here.
To read the documents referenced in the Fixed Income Market Update, please see below:
Global Banks Revisited
Bank Stress Test Note
Overview Investment Grade Document
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