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The case for floating rate credit

The case for floating rate credit

26 August 2026 Fixed income
“Floating rate credit can offer investors something increasingly valuable today: cash-plus income with limited duration risk.”

We believe there are strong reasons to consider investing in floating rate credit. These include the level of potential income being high in comparison to prevailing case deposit rates alongside the low levels of volatility of returns compared to long-dated high yield markets. In addition, healthy corporate balance sheets are helping to maintain the resilience of issuers and subdue the default risks, particularly in the sub-investment grade universe.  

Figure: Attractive yield despite shorter dated bond focus

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