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Investment Grade Credits Financials

Investment Grade Credits Financials

Diversified exposure to the bonds of banks and insurers in different parts of the capital structure

Key points:

  • Banking and insurance sector investment case is strongly supported by improving capital ratios 
  • Dedicated team of portfolio managers and analysts selects the most attractive issuers 
  • ESG research is integrated into the investment process to help assess the downside risk

Philosophy

The case for financial bonds is highly compelling as a result of the Basel III capital adequacy regulations for banks and Solvency II rules for insurers. Traditional subordinated bonds and new types of capital – particularly hybrid instruments – offer attractive investment opportunities as these instruments tend to have significantly higher spreads than senior debt.

Process

In our research process we combine a top-down market view to assess credit attractiveness and factors that drive credit markets in the short term with skillful issuer selection to create a broadly diversified portfolio. In this respect, avoiding losers is more important than picking winners. The portfolio manager takes country risks actively into consideration in choosing where to invest.

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Team

Portfolio managers make investment decisions based on in-depth issuer analysis carried out by a highly experienced team of career credit analysts.

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Contact us if you would like to know more about this topic.

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Disclaimer

BY CLICKING ON “I AGREE”, I DECLARE I AM A WHOLESALE CLIENT AS DEFINED IN THE CORPORATIONS ACT 2001.

What is a Wholesale Client?
A person or entity is a “wholesale client” if they satisfy the requirements of section 761G of the Corporations Act.
This commonly includes a person or entity:

  • who holds an Australian Financial Services License
  • who has or controls at least $10 million (and may include funds held by an associate or under a trust that the person manages)
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    (i) a superannuation fund;
    (ii) an approved deposit fund;
    (iii) a pooled superannuation trust; or
    (iv) a public sector superannuation scheme.
    within the meaning of the Superannuation Industry (Supervision) Act 1993
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    (i) a superannuation fund; or
    (ii) an approved deposit fund; or
    (iii) a pooled superannuation trust; or
    (iv) a public sector superannuation scheme
    within the meaning of the Superannuation Industry (Supervision) Act 1993 and the fund, trust or scheme has net assets of at least $10 million.
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