Investors back off SSAs in favour of credit
Some investors are moving cash out of the sovereign, supranational and agency bond sector and looking to deploy resources in high grade corporate credit, thanks to improved valuations in that sector and the threat coronavirus poses to sovereign debt sustainability.
“Valuations have improved substantially in credit,” said Andrea Iannelli, investment director at Fidelity Asset Management. “We’ve been defensive for a while in credit because of stretched valuations, but now we’re seeing a lot of opportunities to add risk.”Chaos in financial markets typically sends investors scurrying for safe haven assets like ...
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