Use Structural Shifts in Credit Markets to Capitalise on VUCA
Credit markets have experienced fundamental shifts since the Global Financial Crisis and are still being disrupted today. Banks have retrenched from traditional corporate lending with institutional and retail investors filling the gaps. In credit, institutional and retail investors are more diverse and generally more efficient than banks at pricing risks, reducing systemic risk but increasing asset-level risk. This shift and the current VUCA environment create opportunities for investors to increase diversification and income in their diversified portfolios, using carefully selected higher yielding parts of the credit market.
Samantha Milner, Partner and Portfolio Manager at Ares Management (Los Angeles) presented on this topic at the Portfolio Construction Forum Markets Summit 2020. Some highlights from her session are available below.
To watch the full presentation (19 min) and earn Continuing Education (CE/CPD) hours, visit portfolioconstructionforum.edu.au. Portfolio Construction Forum is the specialist, independent, investment continuing education, accreditation and certification service.