Investcorp releases inaugural House View on credit markets

Investcorp releases inaugural House View on credit markets

Bahrain – Investcorp, a leading global provider and manager of alternative investment products, today released its inaugural “House View” on the state of global credit markets. The report analyzes the recent performance of US and European credit markets and provides an outlook for key expectations in 2021.“Credit markets once again demonstrated their resiliency in 2020, staging an extraordinary recovery following the market rout last March and highlighting the need for disciplined and active portfolio management,” said Jeremy Ghose, Global Head of Investcorp Credit Management. “Overall, defaults have been focused on sectors most negatively impacted by COVID-19 and have been offset by significant fiscal and monetary support. Looking ahead, we expect there will continue to be significant volatility across markets, but we also believe that this will create opportunities for skilled active managers to capture value as portfolios are rebalanced amidst the recovery.”Key insights highlighted in the report, include: Global economic momentum slowed during the fourth quarter of 2020 due to rising COVID-19 cases, but the impact has been more limited compared to the initial lock-down in the spring of 2020.US and European markets have been significantly “risk-on” following the November vaccine news.In US credit, high yield spreads tightened over 140 bps