Opportunity: Credit investing
Seizing the opportunity in the credit market
We expect global growth to slow but not tip into a recession, with inflation easing and central banks becoming less restrictive. This creates a favorable environment for high-quality credit. Today’s yields remain attractive, giving credit investors access to strong income potential, higher returns, and better portfolio diversification.
Why credit?
Credit offers a wide range of opportunities with compelling risk-return potential.
History suggests that over the long term, corporate bonds have not only provided diversification but also helped to reduce portfolio volatility.
Beyond that, income return has been a key driver of long-term bond performance. With yields still high and rates easing, now is a prime moment to pivot to credit.
Joop Kohler
Head of Credit team
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The best credit opportunities come from uncovering value in overlooked areas, using a contrarian approach backed by rigorous research
Why now?
With inflation cooling and rates easing, the environment looks favorable for high-quality fixed income, particularly investment grade credit. Yields remain attractive while tightening spreads add to the opportunity. Investment grade companies are in good shape, having managed debt levels proactively in recent years.
Targeting alpha in credit before others see it
Guided by a contrarian approach and backed by 50 years of expertise, we target undervalued opportunities others overlook, aiming to generate strong risk-adjusted returns through market cycles.
Why Robeco?
With decades of experience in corporate bonds, Robeco was among the first European investors to launch a global high yield strategy. Our success is built on rigorous research and global sector expertise, enabling us to uncover high-quality opportunities with strong risk-adjusted returns. Our international team of analysts helps investors manage changing markets and capture alpha1.
Contrarian approach
We take a contrarian approach to investing, meaning we target mispriced opportunities before they’re widely recognized. This allows us to uncover credit investments that offer a balance of resilience, income, and alpha potential.
Sustainability included
As a leader in sustainable investing, we integrate ESG, SDGs, and climate-focused strategies into our credit portfolios. This approach leads to better informed investment decisions.
1Alpha refers to the excess return of an investment relative to a benchmark index and is a measure of performance.
Our solutions
Some segments of the credit market are particularly interesting in the current market environment: short maturity credits benefit from additional credit spreads with only limited duration risk; investment grade credits, which are the least vulnerable in case of a recession; and high-quality crossover credits, which offer an attractive yield pickup while being well-positioned in case of increased credit volatility.
