Uncertainty creates volatility and for active managers, this can lead to opportunity.
The Covid-19 outbreak has reshaped the investment landscape, bringing with it elevated volatility levels which look set to remain the status quo for the foreseeable future.
While the ‘new normal’ environment might be characterised by a challenging combination of low yields, political uncertainty and ongoing geopolitical disputes, active long/short credit approaches have the potential to generate alpha from macro positioning and by harnessing performance dispersion.
In our latest paper, we take a fresh look at the investment landscape, examining how long/short credit strategies can translate opportunities at each stage of the credit cycle.
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