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    Reasons to consider

    Insight’s floating rate credit strategy

    Reasons to consider Insight’s floating rate credit strategy

    15 May 2025 Fixed income

    With central banks easing rates, it may seem counterintuitive to invest in instruments with coupons linked to short-term rates. But for those investors looking for lower-volatility investments, spreads in floating rate credit remain at attractive levels. We believe the terminal level of rates is likely to prove higher than many expect, which combined with the level of spreads should result in still-attractive levels of income in the years ahead.

    Insight’s floating rate credit strategy provides the opportunity to capture attractive levels of yield compared to cash, even as rates fall.

    Figure 1: Attractive yield despite focus on shorter dated bonds

    floating rate credit strategy-chart1.png

    Source: Insight Bloomberg. As at 31 March 2025.

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