In this video, Insight Investment senior portfolio manager Damien Hill discusses why he thinks active management is vital to capturing opportunities in shifting credit markets.
Key points:
- UK credit offers relatively attractive yields per unit of interest rate risk compared with global investment grade.
- Utilities is an appealing sector due to historically cheap valuations, improving regulation, elevated spreads, and insulation from trade war uncertainties.
- High-quality senior banking bonds remain fundamentally strong with robust balance sheets, though lower quality and equity-like bank bonds are less attractive.
- Single A-rated UK investment grade credit is favoured over triple B, supported by slowed flows from traditional buyers like defined benefit pension schemes and insurers.
- Sterling credit exhibits significant spread dispersion, especially in high yield and lower investment grade bonds, presenting potential mispricing opportunities.
2540659 Exp: 13 October 2025
