Market Insights

After a violent repricing of markets, Central banks have acted quickly to backstop credit markets in an unlimited fashion. This has created a unique opportunity for us to invest in quality, defensive businesses that will exist post-COVID-19 at levels not seen in over a decade.

In February, we saw heightened uncertainty as COVID-19 cases spread beyond China, and dramatically repriced risk across all asset classes in the market. Through this volatile time, we continue to reduce risk in the portfolios while also finding selective opportunities.

As ESG factors become increasingly important to investment decisions, the focus has moved away from the binary distinction between brown and green bonds, to concentrating on incentivizing the transition from brown to green at the company level.

While the new year started strong thanks to improving macroeconomic data, exogenous shocks such as Iranian-U.S. aggressions and the novel Coronavirus reintroduced volatility into the market.

Given our flexible and highly active approach to investing, we are excited about the opportunities for the coming year – and we welcome the opportunity to differentiate ourselves from more traditional managers.