Multi-Asset Credit: How a Dynamic Strategy Can Provide Return – and Safety – in Uncertain Times

Multi-Asset Credit: How a Dynamic Strategy Can Provide Return – and Safety – in Uncertain Times

1 March 2018
As rates begin their steady climb, traditional fixed income approaches will struggle to deliver the results asset owners need to meet their liabilities. Many investors are now breaking out of their comfort zone and considering alternative fixed income solutions, such as multi-asset credit (MAC) strategies. Here, we discuss how MAC can help investors find opportunities in all types of markets.
Cast a Wider Net for Outperformance Potential
Cast a Wider Net for Outperformance Potential
Fixed income spectrum returns are nonlinear and more volatile than most people would expect. Broadening the exposure to a much wider universe of credit instruments can give portfolios more potential for outperformance.
Manage Your Risk by Preparing for the Downside
Manage Your Risk by Preparing for the Downside
As with any investment strategy, there are risks to consider with MAC. Essential to managing risk is the manager’s strategic view of where we are in the economic and credit cycle to position for drawdown periods.
Increase Your Alpha Potential Through Security Selection
Increase Your Alpha Potential Through Security Selection
Despite today’s defensive orientation, opportunities to capture alpha still emerge within each region and asset class. For a MAC approach to be effective, bottom-up security selection is key, which means it’s crucial for managers to have knowledge across asset classes and geographical areas.