Fixed Income & Credit Symposium 2021

With rates well and truly crested and bonds once again showing their strength as a defensive ballast mechanism, Capital Group believes the time might be right for investors to swap out cash-like investment vehicles for investment grade credit.

With the danger of fractured markets inflated, the need for a truly non-correlative asset is at a premium. And with the default system cleaned up, Fortlake saw an opportunity to provide investors with the ultimate diversifier.

The key to employing defensive assets effectively, Burtenshaw explained, is knowing what it will do and how it will act. “If an asset isn’t actually predictable, then it’s hard to defend,” he said.