Insights

Liquidity in the fixed income market has been challenged of late as the health crisis and financial market concerns have escalated. Global lockdowns aimed at mitigating the spread of COVID-19 will undoubtedly have ramifications on the global economy.

Traditionally, risk and return are the two most important considerations in the realm of investment management. Modern Portfolio Theory hypothesizes that investors can construct optimal – or “efficient” – portfolios which maximize expected returns by taking on a quantifiable and specific amount of risk.

We review the implications of today’s ultra-low yield environment and the changing opportunity set in private markets.

Sarah Butcher discusses how the current environment particularly favours private credit lenders and what to look for when assessing different investment strategies in the private credit space.

Read our newest article to deep dive into our Active and Strategic Fixed Income team’s approach to Core plus strategies as a possible solution to a low interest rate environment.