The deep divide in credit markets, and how to take advantage
Currently, a big chunk of the credit market shows negative real yields and excessively high levels of interest rate duration risk. However, Ares Australia Management focuses on asset classes at the other end of the spectrum that have high cash yields and lower duration risk.
“Some credit asset classes look very attractive, from a risk-return perspective. We believe these can act as a yield enhancer and diversifier in portfolios,” says Head of Ares Australia Management, Teiki Benveniste.
In the following video, he runs the magnifying glass over a chart that explains why some parts of the credit universe are so attractive, while others are in dire straits.