We have recently witnessed flows towards the fixed rent, especially towards Investment Grade, will this be the trend for the second half of the year or is it temporary? Furthermore, we have seen that, for various reasons, inflationary pressures could be transitory. Given this scenario, should investors look at these types of assets?
On the occasion of the Asset Allocation Month organized by Asset Managers together with Investment Strategies, a few days ago we had the pleasure of holding a meeting between fund managers and selectors to discuss Fixed Income Investment in the current environment. On the part of the managers, we have the participation of Eurizon AM, Credit Mutuel IM and Lazard Fund Managers. On the part of the selectors we had the pleasure of having: Juan Luis Luengo, selector of funds of Santander Private Banking; Miguel Ángel Villoslada, Director of Portfolio Management of MoraWealth; and Ernesto Getino, partner of Getino Finance.
Regarding emerging fixed income and a somewhat adverse political scenario like what we are witnessing in some countries in the region, are there investment opportunities? What would be the ideal product under the macroeconomic scenario? Top-level managers such as Eurizon AM, Credit Mutuel IM and Lazard Fund Managers give us their investment ideas:
Bruno Patain, Country Head Spain and Portugal of Eurizon AM:
“For the second part of the year we believe that there will continue to be investment flows in Investment Grade and High Yield due to the situation we have, due to the support of central banks. Therefore, obviously having a flexible bond strategy makes all the sense. And we continue to believe a lot in Chinese Fixed Income. As we like to say, in the financial world a new sun appears in our orbit, because for decades we have had the United States, and now we have China whose weight is going to be major, it is already the second largest economy in the world and its growth seems almost unstoppable “.
David Córdoba, Head of Credit Mutuel IM in Spain:
“Here we are going to go to the extreme a bit and we are going to go to a high yield fund with maturity in 2024. Why? There has been a significant sector rotation in everything that is the High Yield world. We think there has been bonds that have suffered a lot, that will benefit from the economic recovery if the entire vaccination schedule is fulfilled and optimism returns. There are bonds that can be bought today with and on time with an opportunistic vision. used to buy bonds that we know to expire, in 2024, with very interesting returns from all these sectors that are going to benefit (consumption, automobile, airlines …), and offer profitability. I insist, risk but with caution. And I think 6 to 12 months these months, this type of funds still offer some travel that can be bought at interesting prices.
Monica Arnau, Institutional Sales at Lazard Fund Managers:
“We would focus on financial debt, on European subordinated debt. And I would speak here more of Lazard Capital Fi, which has a bias more to Cocos. We think that, in the end, with all the measures of the central banks, all the mergers that there will now be nationals, but who knows if they will soon begin to be European. We are talking about banks and insurance companies with solid, regulated balance sheets … And I am talking about Lazard Capital Fi because we think it may be a good alternative profitability for the second part of the year “.