Rethinking defence in credit markets

Tailwinds and opportunities in EM hard currency debt

A variety of dynamics point to a stronger investment case and good entry point into the asset class.

Rethinking diversification

Why is diversification in fixed income portfolios more important than ever, and what’s the best way to achieve it today? Ellie Clapton and Darpan Harar explore the key considerations in the current environment.

7 minutes

Credit Chronicle: Q1 2025

Our credit experts review market developments in Q1 and reflect on the investment implications of Trump’s “Liberation Day” tariffs.

Picture this: a tale of two tails in credit markets

While the high-yield debt market compares favourably with bank capital from the perspective of index-level credit spreads, beneath the surface the differences are stark. Bank capital is among specialist credit markets that present a smarter choice for investors.

A different perspective on high-yield markets

Reflecting on recent developments in the high-yield corporate debt market, Ellie Clapton and Darpan Harar provide pointers on how to identify the most attractive investment opportunities.

Credit Chronicle: Q4 2025

Our credit experts review how credit markets fared in the fourth quarter of the year and share the latest scorecards for the global credit universe.

An abundance of untapped opportunities

Structural growth drivers remain strong in this increasingly relevant – and in focus – part of the global private credit market. In addition, developments in the renewable energy sector and AI are giving rise to a new cohort of investment opportunities. The deal pipeline continues to expand across the EM universe.

Picture this: AI issuance is the big issue in credit

The surge of artificial intelligence is making its mark across financial markets. While runaway valuations – driven by a handful of tech companies – are the main focus in equities, an uptick in tech-sector issuance is the big issue in credit markets and it’s redrawing the investment landscape.

Credit Chronicle: Q3 2025

Our credit experts review how credit markets fared in the third quarter of the year and share the latest scorecards for the global credit universe.

Picture this: short-sightedness in a mainstream credit market

Investors in investment-grade bonds have focused purely on yields in recent years, looking past historically tight credit spreads. With yields now falling, the market’s allure could fade, and investors might be in for a bumpy ride.

The shrinking upside in the dollar story

Our research offers three reasons why the dollar’s upside is limited, while the balance of risks increasingly point lower.

Right place, right time: EM local currency debt today

With global portfolios in flux, EM local currency debt deserves a second look. A decade-long structural evolution has reshaped the market and enhanced its investment appeal.

Credit Chronicle: Q2 2025

Our credit experts review how credit markets fared in the second quarter of the year and share the latest scorecards for the global credit universe.

The unstoppable dollar meets the immovable Mr Trump

Dollar cycles are longer than others because four self-reinforcing forces create inertia. They rarely reverse unless all four turn at once. Trump-era policies, fiscal strain and shifting global capital could trigger such a convergence.

Beyond the one-way trade

For years, capital has gravitated to the US.  A one-way trade powered by tech dominance and economic heft. But as the world tilts on its axis, the next cycle is unlikely to resemble the last, and the investment map is beginning to redraw itself.

Picture this: Higher yields ≠ higher returns

Since the start of this year, the highest-yielding (riskiest) parts of the global high-yield market have underperformed. Rather than compromising on risk, investors should find different ways to meet their objectives.

Tipping point: a turn in the US dollar cycle and what it means for emerging market debt

After more than a decade of US dollar dominance, the currency’s extraordinary rally may finally be peaking. For EM debt investors, a weaker dollar could mark a long-awaited shift from headwind to tailwind.

Reframing fixed income: the old rules are no longer fixed

Peter Kent, Co-Head of Fixed Income, argues bond markets are in a new regime – ‘safe havens’ are no longer acting as such, and investors can no longer expect asset classes to behave as they have done historically. As a result, asset allocation approaches need a reboot, and portfolio diversification has never been such a virtue.

Tapping into the global energy transition

Portfolio Manager Matt Christ explains how investments in EM private credit offer both compelling return potential and the chance to make a meaningful contribution to global climate goals.

Modernising Defence

Ellie Clapton and Jason Borbora-Sheen unpack why the 60/40 playbook is under pressure, and how to modernise defence for a more volatile world.

6 minutes

Tailwinds and opportunities in EM hard currency debt

A variety of dynamics point to a stronger investment case and good entry point into the asset class.

Rethinking diversification

Why is diversification in fixed income portfolios more important than ever, and what’s the best way to achieve it today? Ellie Clapton and Darpan Harar explore the key considerations in the current environment.

7 minutes

Credit Chronicle: Q1 2025

Our credit experts review market developments in Q1 and reflect on the investment implications of Trump’s “Liberation Day” tariffs.

Picture this: a tale of two tails in credit markets

While the high-yield debt market compares favourably with bank capital from the perspective of index-level credit spreads, beneath the surface the differences are stark. Bank capital is among specialist credit markets that present a smarter choice for investors.

A different perspective on high-yield markets

Reflecting on recent developments in the high-yield corporate debt market, Ellie Clapton and Darpan Harar provide pointers on how to identify the most attractive investment opportunities.

Credit Chronicle: Q4 2025

Our credit experts review how credit markets fared in the fourth quarter of the year and share the latest scorecards for the global credit universe.

An abundance of untapped opportunities

Structural growth drivers remain strong in this increasingly relevant – and in focus – part of the global private credit market. In addition, developments in the renewable energy sector and AI are giving rise to a new cohort of investment opportunities. The deal pipeline continues to expand across the EM universe.

Picture this: AI issuance is the big issue in credit

The surge of artificial intelligence is making its mark across financial markets. While runaway valuations – driven by a handful of tech companies – are the main focus in equities, an uptick in tech-sector issuance is the big issue in credit markets and it’s redrawing the investment landscape.

Credit Chronicle: Q3 2025

Our credit experts review how credit markets fared in the third quarter of the year and share the latest scorecards for the global credit universe.

Picture this: short-sightedness in a mainstream credit market

Investors in investment-grade bonds have focused purely on yields in recent years, looking past historically tight credit spreads. With yields now falling, the market’s allure could fade, and investors might be in for a bumpy ride.

The shrinking upside in the dollar story

Our research offers three reasons why the dollar’s upside is limited, while the balance of risks increasingly point lower.

Right place, right time: EM local currency debt today

With global portfolios in flux, EM local currency debt deserves a second look. A decade-long structural evolution has reshaped the market and enhanced its investment appeal.

Credit Chronicle: Q2 2025

Our credit experts review how credit markets fared in the second quarter of the year and share the latest scorecards for the global credit universe.

The unstoppable dollar meets the immovable Mr Trump

Dollar cycles are longer than others because four self-reinforcing forces create inertia. They rarely reverse unless all four turn at once. Trump-era policies, fiscal strain and shifting global capital could trigger such a convergence.

Beyond the one-way trade

For years, capital has gravitated to the US.  A one-way trade powered by tech dominance and economic heft. But as the world tilts on its axis, the next cycle is unlikely to resemble the last, and the investment map is beginning to redraw itself.

Picture this: Higher yields ≠ higher returns

Since the start of this year, the highest-yielding (riskiest) parts of the global high-yield market have underperformed. Rather than compromising on risk, investors should find different ways to meet their objectives.

Tipping point: a turn in the US dollar cycle and what it means for emerging market debt

After more than a decade of US dollar dominance, the currency’s extraordinary rally may finally be peaking. For EM debt investors, a weaker dollar could mark a long-awaited shift from headwind to tailwind.

Reframing fixed income: the old rules are no longer fixed

Peter Kent, Co-Head of Fixed Income, argues bond markets are in a new regime – ‘safe havens’ are no longer acting as such, and investors can no longer expect asset classes to behave as they have done historically. As a result, asset allocation approaches need a reboot, and portfolio diversification has never been such a virtue.

Tapping into the global energy transition

Portfolio Manager Matt Christ explains how investments in EM private credit offer both compelling return potential and the chance to make a meaningful contribution to global climate goals.

Modernising Defence

Ellie Clapton and Jason Borbora-Sheen unpack why the 60/40 playbook is under pressure, and how to modernise defence for a more volatile world.

6 minutes

Tailwinds and opportunities in EM hard currency debt

A variety of dynamics point to a stronger investment case and good entry point into the asset class.

Rethinking diversification

Why is diversification in fixed income portfolios more important than ever, and what’s the best way to achieve it today? Ellie Clapton and Darpan Harar explore the key considerations in the current environment.

7 minutes

Credit Chronicle: Q1 2025

Our credit experts review market developments in Q1 and reflect on the investment implications of Trump’s “Liberation Day” tariffs.

Picture this: a tale of two tails in credit markets

While the high-yield debt market compares favourably with bank capital from the perspective of index-level credit spreads, beneath the surface the differences are stark. Bank capital is among specialist credit markets that present a smarter choice for investors.

Rethinking defence in credit markets

Ellie Clapton

Justin Jewell

Authored by

Ellie Clapton

Investment Director

Justin Jewell

Portfolio Manager

Differentiated Fixed Income and Credit – latest insights

A different perspective on high-yield markets

Credit Chronicle: Q4 2025

An abundance of untapped opportunities

Picture this: AI issuance is the big issue in credit

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