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    Generating returns in an environment of low credit spreads and macro volatility

    Generating returns in an environment of low credit spreads and macro volatility

    04 November 2025 Video, Fixed income

    In this session, Andy Burgess, Deputy Head of Investment Specialists, explores how asset-backed securities and absolute return strategies could provide investors with compelling opportunities to generate returns amid heightened uncertainty and compressed credit spreads.

    Key takeways

    • Opportunities in a challenging market environment: Credit spreads are at post-global financial crisis lows and volatility is elevated. Despite tight spreads, investment grade credit still offers value and compensates you for default risk
    • Considering alternatives: Investors may wish to consider alternatives such as asset-backed securities (ABS) and absolute return strategies, which can exploit market volatility and complexity premia.
    • Multi-layered risk assessment: Understanding credit risk through a multi-layered approach is important and includes such practices as evaluating bond structure, collateral, underwriting, and market pricing to ensure resilience if things go wrong.
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