Fixed Income

A case of déjà vu


Stuart Gray

Stuart Gray

Fund Manager, Fixed Income and Head of Credit Research

The peak of the Global Financial Crisis was less than six years ago so the pain suffered should still be fresh in the memories of credit investors. Investors could not make the same mistakes again. Or could they? This paper aims to highlight the increasing risk in credit assets, while not identical to those prior to the GFC, bear a very strong resemblance. In highlighting what we see as mispriced risk, we conclude by considering how this impacts our thinking in terms of managing fixed income portfolios.

Important Information:
Opinions, estimates and projections in this article constitute the current judgement of the author as of the date of this article. They do not necessarily reflect the opinions of Schroder Investment Management Australia Limited, ABN 22 000 443 274, AFS Licence 226473 ("Schroders") or any member of the Schroders Group and are subject to change without notice. In preparing this document, we have relied upon and assumed, without independent verification, the accuracy and completeness of all information available from public sources or which was otherwise reviewed by us. Schroders does not give any warranty as to the accuracy, reliability or completeness of information which is contained in this article. Except insofar as liability under any statute cannot be excluded, Schroders and its directors, employees, consultants or any company in the Schroders Group do not accept any liability (whether arising in contract, in tort or negligence or otherwise) for any error or omission in this article or for any resulting loss or damage (whether direct, indirect, consequential or otherwise) suffered by the recipient of this article or any other person. This document does not contain, and should not be relied on as containing any investment, accounting, legal or tax advice. Schroders may record and monitor telephone calls for security, training and compliance purposes.