Insight | Investment Grade Credit

Since the beginning of the year, I have highlighted the opportunities in high-quality investment grade and cross-over BB credits, noting how significant yield increases have enabled investors to earn quality income. Now that we are in the second half of the year, where do we stand?

Summary:

• Investment grade credit offers higher long-term returns than government bonds.

• As rates ease and inflation moderates, bonds regain their role as diversifiers.

• Increased dispersion in credit markets is good news for active managers.