1 July 2022
Value - a key driver of credit returns
Investing with a focus on value rather than index weightings over the longer term, allows disciplined investors to capture higher yields without compromising risk-return metrics.
Value investing in credit markets
For the past 15 years the Corporate Credit team at Absalon Capital has focused on a unique approach to global credit investing which focuses on potential opportunity and not index positioning.
The Corporate Credit Team at Absalon Capital
About us
The Corporate Credit Team was formed in 2006 and is based in Copenhagen, Denmark. The team owns 35% of the equity of their business which ensures an alignment of interests between the team and investors.
Value investing
We believe in active bottom-up bond selection. We ignore index weightings and instead focus on identifying undervalued bonds irrespective of their sector or geography. Our portfolios will deviate substantially from an index orientated approach.
Our performance
Historically our strategies have delivered superior returns relative to a passive or index orientated approach with significantly fewer defaults.
Latest news
4 May 2022
How we define value in credit markets
The concept of value investing is well understood in equities but often misunderstood in credit markets. In equities value is often considered in absolute terms; in credit markets value is commonly viewed in relative terms. An undervalued bond is one that trades at a wider spread relative to similar rated bonds.
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