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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. 

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Overview

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.

Investment Universe and Approximate Size1 (USD)

US$1.2 tn

Global Bank Loans

US$2.0 tn

Global High Yield Bonds2

US$800 bn

CLO Debt Tranches

US$200 bn

Stressed Debt3

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As of 30 June 2021. 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.

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Philosophy

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.

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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.

Global Opportunistic Credit Makes Opportunistic Adjustments Over a Credit Cycle

Source: PineBridge Investments. 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.

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Process

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.

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Application and Potential Benefits

Global Opportunistic Credit may be worth considering for investors who are looking to:

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Access Opportunities Often Overlooked

The strategy seeks to capitalize on market inefficiencies by leveraging idiosyncratic risks from the credit cycle.

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Draw Upon the Expertise of Credit Specialists With a Consistent Track Record

Our stable and experienced leveraged finance team has invested across geographies and capital structures, in a range of market cycles.

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Gain Diversified, Multi-Sector Credit Exposure in One Vehicle

The targeted portfolio represents our best ideas across the global credit spectrum.

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