Why size matters (April 2021) As a value investor in credit markets we use our active bottom up fundamental approach to identify bonds trading below their intrinsic value. As the global economy continues to recover, spreads across larger bonds have rapidly compressed back to pre-pandemic levels. As we have witnessed in previous cycles, smaller issuers have been much slower to react to the improving global economy. In this short note we highlight the opportunities we see in mid/smaller issuers and provide examples of why we find better value in this overlooked area of the market.
Value investing in the Global High Yield Market (February 2021) As an unconstrained value focused manager, we seek to buy bonds where the spread over compensates for the risk of default. In this note we highlight the importance of systematic factors as drivers of returns and highlight how we exploit opportunities in often overlooked areas of the market
EM Corporate Debt - An allocation suitable for an uncertain world (January 2021) With more than 80% of global sovereign debt now yielding less than 0.5%, there is an obvious lack of income generating opportunities for investors. With rates at such low levels a mild pick-up in inflation as we have witnessed over the last couple of months has had negative consequences for duration sensitive assets. In this note we examine the opportunities we believe to be present in Emerging Market Corporate Debt.