Global Credit Income Quarterly Review and Outlook as at December 2016

Key Highlights  

• Despite not feeling the full benefit of the government bond sell-off, credit spreads moved marginally tighter in the month which led to the positive strategy performance.
• In the current low growth, low rate environment demand for higher yielding securities, including investment grade and high yield bonds, has increased.
• We believe that returns often overcompensate for credit risk, and that diversification across a large pool of lowly correlated assets will generate positive ‘value-for-risk’ outcomes for our portfolios.
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