Current Thoughts on IG

Of the three major regions I focus on, all present interesting opportunities and yields at the moment. However, they all have unique challenges. In the US, the aggressive hiking probably means that inflation will fall first, but also that an economic downturn is closest. In Europe, the ECB still has further to go with hikes and will surely one day have to start to sell down its large book of QE corporate bonds. In the UK, I see some relative cheapness compared to these regions, and the BoE is surprisingly dovish which may mean inflation stays higher for longer. If we can find names, as we can, that do not need to increase borrowing by the same rate as inflation, they are getting more credit worthy, not less.

The value of investments will fluctuate, which will cause prices to fall as well as rise and you may not get back the original amount you invested. Past performance is not a guide to future performance.

Ben Lord

Job Title: Fund Manager

Specialist Subjects: Corporate bonds, inflation markets, financial institutions and credit default swaps

Likes: Sport, weekends, cooking, countryside

Heroes: Ron Burgundy, Superman, P.G. Wodehouse

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