Strategy Spotlight:
PineBridge Global Opportunistic Credit

A Multi-Asset Credit Strategy for Evolving Markets

Global credit markets are facing headwinds that will likely prevent traditional investment approaches from delivering the results asset owners need to meet their liabilities. We expect these dynamics could create opportunities in Global Opportunistic Credit, which seeks to capitalize on individual credits and issuers adjusting to evolving business conditions through multi-asset credit exposure.

PineBridge Global Opportunistic Credit (GOC) is a “best ideas” global multi-asset credit strategy. It seeks attractive risk-adjusted returns from the idiosyncratic risks of individual credits and issuers. To do this, it invests opportunistically across the spectrum of sub-investment-grade credit through an active, long-only, credit-focused approach.

We believe global fixed income markets are constantly evolving, creating inefficiencies that cause prices to dislocate from their fair value. We seek to capitalize on these inefficiencies by investing in a countercyclical manner over a credit cycle through a disciplined, research-driven investment approach. Central to our approach is bottom-up credit analysis and security selection, which we use to uncover securities that we believe are priced inefficiently.

Opportunistic Positioning to Adapt to Evolving Markets
The strategy leverages idiosyncratic risks from the credit cycle and shifts between core and tactical allocations to seek the most attractive risk-adjusted returns. 

Investment Universe and Approximate Size1 (USD)
Global Bank Loans Global High Yield Bonds2 CLO Debt Tranches Stressed Debt3
$1.2 tn. $1.8 tn. $500 bn. $200 bn.

PineBridge’s broad global credit platform allows us to focus on what we feel are the most attractive risk-adjusted opportunities across regions and asset classes – in all types of markets. 

Our investment process focuses on building a portfolio of our best ideas, which are uncovered through a research-driven credit process and by leveraging regular, formalized knowledge sharing between our teams of fixed income experts. We employ a proprietary credit scoring system and augment our security selection skills by leveraging long-standing asset allocation processes both within the team and throughout the firm.

Applications and Potential Benefits
Global Opportunistic Credit may be worth considering for investors who are looking to:    

Overlooked Opportunities Consistent Track Record Credit Exposure
Access Opportunities Often Overlooked Draw Upon the Expertise of Credit Specialists With a Consistent Track Record Gain Diversified, Multi-Sector Credit Exposure in One Vehicle
The strategy seeks to capitalize on market inefficiencies by leveraging idiosyncratic risks from the credit cycle. The stable, experienced leveraged finance team has delivered consistent excess returns across geographies and capital structures. The targeted portfolio represents our best ideas across the global credit spectrum.

As of 31 December 2018. For illustrative purposes only. We are not soliciting or recommending any action based on this material. Any views represent the opinion of the investment manager and are subject to change.

1Source: Global Bank Loans: S&P/LSTA, Global High Yield Bonds: Bloomberg Barclays, CLO Debt Tranches: JPM, Stressed Debt: PineBridge Investments calculations based on a subset of the loans and high yield market. 
2Includes emerging markets corporate bonds. 
3Stressed Debt represent an asset characteristic that spans asset classes.