In a fast-moving world, we believe that reacting swiftly to evolving conditions can positively impact investors’ returns. Multi-asset credit provides the needed flexibility to benefit in attractive conditions. At the same time, it seeks to provide downside protection when markets turn. As a team, we believe this strategy represents an attractive risk/return profile.
- We offer deep expertise across the fixed income spectrum and diverse investment styles. This means that we can harness ideas across investment grade, global high yield, loans, convertible bonds and emerging markets.
- Our internal Asset Allocation Committee meets monthly to decide on the asset allocation, placing a high priority on capital preservation.
The emerging market corporate universe is large and growing in both size and liquidity. However, given the historic lack of focus from the investment community and the relatively small dedicated investor base, we believe pricing anomalies still exist. Our reputation as an emerging markets dedicated manager provides the potential to engage with local government officials and corporate issuers.
- We believe the higher secular growth rates and spread pick-up in emerging countries and corporates are characteristics that offer a compelling risk/return profile relative to developed markets.
- We evaluate backward-looking data, but place greater emphasis on forward-looking risk. This could be driven by socio-political developments, policy decisions, economic data surprises or regulatory changes.
- Our approach is to ‘think like a policy maker.’ Through our proprietary, bottom-up research, we develop forecasts for sovereign credit spreads, interest rates and currencies. Taking into consideration how these forecasts interact, we develop a broader picture of the potential outcomes across the asset class.
Our team believes that higher-quality issuers will result in a relatively low default risk compared to other asset classes, while providing the potential for excess returns over cash.
- We focus on research-driven, fundamental analysis that shapes our ideas.
- We construct portfolios that aim to minimize credit risk while seeking to generate compelling returns by expressing investment ideas and themes across the risk spectrum.
Our team focuses on convertible bonds, which offer the potential for equity-like returns but with lower volatility than equities. At the same time, convertible bonds offer the security and capital protection characteristics provided by a bond investment.
- We take a fundamental, benchmark-agnostic approach.
- We employ an active management style and rigorous investment process that offer investors a lower volatility strategy with compelling alpha generation potential.
- We share research and analysis firm-wide, meaning our dedicated convertibles research team benefits from the firm’s overall expertise.
We have a long-standing track record across leveraged finance. Our expertise covers high yield bonds, syndicated loans, mezzanine finance, distressed debt and direct lending.
- A research-driven, fundamental approach to security selection emphasizes capital preservation and downside mitigation.
- In our view, the avoidance of corporate decline – and ultimately defaults – is essential to ensure we achieve compelling, risk-adjusted returns throughout the credit cycle for our clients.
U.S. Fixed Income desk
BlueBay’s U.S. Fixed Income capabilities are supported by a group of over 35 U.S.-based investment professionals, led by Andrzej Skiba, Head of U.S. Fixed Income. This group includes members of the Investment Grade, Leveraged Finance and Structured Credit desks. As part of an integrated global fixed income team, our U.S. Fixed Income presence enables us to access the breadth of investment opportunities available in U.S. fixed income markets to deliver domestic as well as global portfolio solutions to clients.