Investment Strategies

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• Investing Through Climate Risk

  Across every asset class, investors are facing the reality and urgency of climate change and its associated risks.

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• Metaverse & the Disruption of the Internet

  The sci-fi inspired vision behind an idealized metaverse is clear—but the road to get there is uncertain. As the industry tries to adapt existing business models to fit this new (virtual) reality, which companies will be the winners?

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• Public & Private Credit Market Roundtable

  In this roundtable discussion, our credit market experts across public and private markets offer their views on everything from inflation and the direction of interest rates, to where they’re seeing pockets of value.

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• 2022 Public & Private Credit Market Outlook

  Barings' credit market experts weigh in on the future prospects for asset classes ranging from high yield and emerging markets debt to CLOs and private credit. From interest rates and inflation, to supply chains and COVID, the group discusses the risks and opportunities ahead.

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• EM Debt: Why Passive Strategies Often Miss the Mark

  When it comes to emerging markets, index tracking can result in both increased risks and missed opportunities.

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• The Next Generation of Business Development Companies

  Jon Bock, CFO of Barings BDC, describes the transformational development of BDCs as an asset class, explains the trends driving M&A in the space and sheds light on why the asset class continues to garner increased attention from investors.

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• Three Trends Driving Today’s European Private Credit Market

  Incumbency, a laser focus on risk mitigation, and a unique approach to ESG are critical in this “winner-takes-all” environment.

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• CLOs: Supply/Demand Dynamics Driving Opportunities

  As heavy supply creates bottlenecks for investors and dealers, refinancing and reset transactions continue to look attractive, particularly BB tranches.

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• IG Credit: Higher Rates on the Horizon

  With rate hikes potentially on the horizon, and spreads fairly tight, there may be benefits to a multi credit strategy that looks beyond traditional IG corporate credit—to areas such as EM corporate debt and CLOs.

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• Uncovering Growth & Innovation in Germany's Hidden Champions

  Across the German equity market, small and medium-sized companies that are leaders in their fields, and have access to innovative technologies, look well-positioned for long-term growth.

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• High Yield: Still Strong, Despite Market Jitters

  Bouts of short-term volatility are almost a given going forward—but in our view, much of the recent market concern overlooks how strong the average high yield company is today.

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• From Rates, to Growth, to China: What’s Next for EM Debt?

  While volatility resurfaced in the third quarter, there are a number of positive factors that continue to support EM sovereign, corporate and local debt.

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• Measuring a Country’s Carbon Emissions: A Debate with High Stakes

  Why some metrics are more accurate, more equitable, and more efficient than others.

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• The Potential Benefits of Global Senior Secured Bonds

  From capital structure seniority and high historical recovery rates, to lower interest rate sensitivity, global senior secured bonds offer a number of potential benefits.

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• European Private Credit: Winner Takes All?

  Mark Wilton, a portfolio manager in Barings’ Global Private Finance Group, describes the competitive backdrop in European private credit, including what's driving manager outperformance and access to deal flow, as well the ever-increasing focus on ESG.

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• High Yield: Why Fundamentals May Be Stronger Than You Think

  Barings’ David Mihalick and Chris Sawyer assess the health of the global high yield bond and loan markets against a backdrop of COVID uncertainty, potentially higher rates and an ever-increasing focus on ESG.

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• Growing Pains for EM Corporates Amid China's Regulatory Crackdown

  Chinese corporates are experiencing growing pains as fines and restrictions rain down on sectors like tech, real estate and education—but select opportunities are emerging as well.

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• Software’s Big Bang

  An important transformation is happening in the software industry today, which is likely to see the sector’s growth continue to outpace the rest of the IT industry—and the broader economy—for many years to come.

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• How Innovations in Private Credit Are Driving ESG Progress

  Sustainability-linked loans are among the new ways lenders are providing incentives for middle market companies to strengthen their ESG practices.

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• EM Debt: Assessing the Impact of China’s Crackdowns

  Omotunde Lawal, Head of EM Corporate Debt, sheds light on China’s recent regulatory crackdowns on industries ranging from technology to education to property, and explains the risks and opportunities these actions may present for fixed income investors.

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• ESG in Smaller Companies: An Overlooked Opportunity?

  When it comes to ESG, smaller companies have their own unique challenges—which can also provide opportunities for active managers to identify unrecognized growth and undervalued companies.

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• Three Reasons for EM Corporate Short Duration Debt

  While the potential for inflation and rising rates could create a headwind for EM debt, a short duration approach can provide an opportunity to pick up incremental yield and diversification, with less volatility.

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• IG Credit: Flexibility is Key

  While uncertainty remains around rates and inflation, opportunities continue to emerge across IG credit, including in areas outside of traditional corporate bonds.

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• Deja vu for CLOs?

  Heavy supply around quarterly payment dates has led to predictable periods of spread widening in the CLO market—creating attractive relative value opportunities up and down the capital structure.

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• The Wind Remains at High Yield's Back (For Now)

  Accelerating economic growth and improving corporate financial conditions, coupled with a manageable default picture, continue to bolster high yield. But with ongoing uncertainty around inflation and rates, loans in particular may be worth consideration.

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• EM Debt: Fundamentals Back to the Forefront

  The EM growth picture remains positive, but with the Fed’s hawkish pivot toward quarter-end, sovereign and corporate debt look better positioned than local currencies.

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• ESG: Managing Climate Risk in EM Corporate Debt Portfolios

  EM companies are making strides when it comes to capturing and disclosing climate risks, but there is work still to be done. Encouragingly, investors and managers are often able to go a few steps further to fill the gaps.

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• ESG Innovations in Private Credit

  Aaron Gillespie, portfolio manager in Barings Global Private Finance group sheds light on the evolving landscape for analyzing and incorporating ESG factors into private credit investing, including recent innovations like sustainability-linked loan agreements.

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• CLOs: The Proof is in the Process

  In this Q&A, Adrienne Butler discusses Barings’ longstanding presence in the CLO market and shares her views on what it takes to navigate the often-misunderstood asset class.

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• Three Factors Shaping the Opportunity in Asian Equities

  Due largely to the supportive structural trends unfolding across the region—from digitization, to de-globalization, to the rising importance of sustainability—the long-term potential in Asian equities remains positive.

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• EM Debt: How ESG & Economics Are Shaping the Outlook

  Ricardo Adrogue and Kawtar Ed-Dahmani see room for positive economic surprises in emerging markets despite concerns from COVID to higher interest rates to inflation.

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• Internet 3.0 and the Next Wave of Innovation

  While Internet 3.0 promises significant disruption, it seems to be more of an evolution of Internet 2.0—and anyone writing off the winners of the Internet 2.0 era should be wary.

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• Global Resources: Poised for Long-Term Growth?

  From decarbonization to renewable energy, there are a number of structural trends unfolding that should provide a supportive backdrop for natural resources going forward.

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• ESG in High Yield: Three Challenges Facing Managers Today

  High yield portfolio manager, Gareth Hall, provides insight into three ESG challenges facing high yield managers today—from influencing company behavior as debt holders, to measuring carbon emissions and advocating for their reduction, to solving for data limitations.

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• From Diets to Tech: The Opportunity in Sustainable Agriculture

  A technological revolution is reshaping the agricultural landscape, creating opportunities in companies that are increasing the sustainability of arable farming and protein production.

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• ESG in Asia: Accelerating Momentum

  The ESG regulatory landscape in Asia is quickly evolving, making sustainable practices an increasingly integral factor in investment decisions. As a result, Asian companies with better or improving ESG disclosures look well-positioned going forward.

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• Private Credit: What CIOs are Watching Today

  Barings’ Jon Bock hosts a cinema-themed roundtable discussion with leading CIOs and investors in the private credit markets covering the asset class’ recent performance, the current challenges facing LPs and GPs, and how to prepare for what’s next.

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• From Diversification to ESG: The Evolving Opportunity in ABS

  Asset-backed securities can offer a number of benefits as part of a broader fixed income mandate—particularly given the strong structural protections, diversification benefits and advancements in ESG.

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• CLOs: What's Driving the Opportunity Today?

  Co-Heads of Structured Credit, Melissa Ricco and Taryn Leonard provide insight into last year’s ‘rollercoaster ride’ in CLOs, and explain why both fundamental and technical factors appear to be aligning to create a strong backdrop for the asset class moving forward.

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• Why Now May Be a Good Time to Consider CLOs

  A wave of refinancings has tested the CLO market’s capacity, but it has also created relative value opportunities up and down the capital structure—particularly in seasoned, BB deals.

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• Has EM Debt Reached a Turning Point?

  There are reasons to believe EM growth will surprise to the upside in the coming months, suggesting the asset class may be poised for strong performance.

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• From Rising Rates to Rising Stars: What’s Ahead for IG Credit?

  Rising rates can bring challenges to IG corporate credit, but opportunities are emerging as well—particularly given the supportive fundamental and technical backdrop.

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• Is High Yield in a Sweet Spot?

  High yield continues to benefit from supportive tailwinds—from an improving default picture to lower sensitivity to rising rates—and may be poised for strong performance as the recovery takes hold.

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• European Private Credit: Positive Momentum

  Barings' Adam Wheeler describes the strong and improving conditions in the European private credit market that have led to increased deal flow and higher-quality structures in recent months.

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• Riding the Refinancing Wave

  Private credit has fared well during this crisis, but the real test may come at the back end, say Barings’ head of private assets Eric Lloyd and CFO of Barings BDC Jon Bock.

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• ESG: Three Challenges High Yield Managers are Tackling Today

  From influencing company behavior to seeking better data disclosure, high yield managers are pushing the envelope when it comes to ESG.

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• High Yield: Finding Opportunity in the Uneven Recovery

  In this webinar, Barings' high yield portfolio managers share their latest market views and discuss where they expect to see opportunities going forward.

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• ESG in Equities: Identifying Winners in the Energy Transition

  Clean energy and anti-pollution initiatives will continue to impact the equity investment landscape—but not all companies will be winners, and careful analysis will be needed to identify those that stand to benefit and those that may see a threat to their business model.

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• Finding the Right Sovereign ESG Indicators: A Greek Tragedy?

  On our mini odyssey through the vast seas of sovereign ESG indicators, we sought to identify data from reliable third parties—which would provide benchmarking criteria between countries and also serve as an effective screening tool to identify outliers.

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• EMD: Light at the End of the Tunnel

  The rollout of the COVID vaccine may be slower across emerging markets, meaning restrictions will likely remain in place for the foreseeable future. But there are bright spots—including in local currencies and companies that have adapted to this ‘new normal’.

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• Why the Distressed Debt Opportunity Looks Different This Cycle

  A surge in defaults and distressed opportunities seemed likely when COVID struck—but stimulus measures and creative financing solutions have reshaped both the opportunity set and the timing.

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• High Yield: Strong Tailwinds, But It May be a Bumpy Ride

  High yield has a number of supportive tailwinds at its back—from a more manageable default picture and less exposure to potentially rising rates to investors’ continued demand for yield. But uncertainties remain, suggesting a potentially bumpy path to recovery.

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• Three Factors Shaping the Opportunity in European Private Credit

  The growing importance of market access, a wider investor base and the impact of ESG on pricing are reshaping the European middle market.

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• North American Private Credit: Expectations vs. Reality

  The impact of COVID on North American private credit has been surprising in some ways and more predictable in others. Ian Fowler sheds light on lessons learned over the past year and offers advice on how to navigate today’s market.

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• Emerging Markets Equity: Evolving & Transforming

  Technological innovation, an increasingly confident consumer and a growing focus on ESG are re-shaping the long-term growth opportunity in emerging market equities.

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• Private Credit: Boring is (Still) Beautiful

  Barings' Ian Fowler discusses the current state of the North American private credit market, including insights into deal activity, pricing, and how the Barings team is investing through the pandemic.

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• Four Themes for Insurance Asset Management in 2021

  Insurers have fared relatively well through the pandemic, but there is likely a long and uneven road to recovery ahead. With this in mind, there are four key themes worth considering for insurance company investors in the months to come.

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• EM Debt: Where is the Value Today?

  Barings’ Cem Karacadag discusses the outlook for emerging markets debt, including the uneven impact of the pandemic, how rising interest rates and fluctuating currencies may influence the picture, and the increasing role that ESG is playing in identifying winners and losers.

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• The False Dawn of Big Tech Regulation?

  Calls for increased regulation of tech giants have indeed grown—but will they have the desired impact? In our opinion, the focus on "big is bad" is simply ineffective in a digital world.

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• CLOs: Cautious Optimism

  Coming off a tumultuous year, CLOs look well-positioned going forward—particularly if the economy continues to heal and rates move higher.

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• How Healthy is Today's Private Credit Market?

  Barings’ Jon Bock weighs in on the dynamics shaping private credit today—from deal activity, to leverage metrics, to spread levels—and discusses how investors can access the opportunity.

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• 2021 Outlook: The Uneven Recovery

  The recovery in many ways looks real and durable—but it also looks uneven and, in some cases, quite unpredictable. In this discussion, investment professionals from the public and private markets discuss where they expect to see risks and opportunities in the year ahead.

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• 2021 Outlook: The Uneven Recovery

  Listen as Barings' portfolio managers and investment professionals discuss the cyclical and structural trends expected to shape public and private markets in 2021 & beyond.

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• Why Tech Bubble Fears are Overdone

  The tech sector’s impressive performance and increasing concentration in indexes has led to concerns of expensive valuations—with some fearing that we could be in bubble territory. In our view, such worries are not justified, and we believe tech’s outlook remains healthy.

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• CLOs: A Bias Toward Quality

  CLOs continued their rebound in the third quarter, but the potential for volatility going forward is high. In this environment, there may be benefits to moving up in quality.

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• EMD: A Strong Tailwind, But Risks on the Horizon

  Segments of the EM debt market have been bright spots in fixed income this year. Will EMs outperform DMs in the months ahead—or are the risks too great? It may come down to country and credit selection.

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• High Yield: Bridging the Gap to a Post-COVID World

  What lies ahead for high yield markets? Head of Global Public Fixed Income, Martin Horne weighs in on what the bifurcated asset price recovery, record issuance levels and falling default expectations imply for high yield markets in the months ahead.

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• IG Credit: Upgrading the Roster

  In a landscape rife with risk, there may be benefits to upgrading both credit quality and liquidity.

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• Post-COVID European Private Credit: A Higher Quality Market?

  On the back of COVID, transactions in the European middle market are showing decreased leverage levels, stronger documentation and improvements in pricing—suggesting a rebasing of the market from where it has been for the past several years.

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• Are EM Countries Able (and Willing) to Pay Their Debt?

  Capitalizing on opportunities in EM debt will not only require traditional fundamental analysis to determine countries’ ability to satisfy their debt obligations, but also—and perhaps just as importantly—an understanding of their willingness to pay.

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• The Crisis No One is Talking About

  The migration patterns stemming from Venezuela’s economic collapse provide key ESG insights, especially for Colombia and other neighboring countries, and particularly when compared to the case of Syrian refugees in Turkey.

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• ESG in Equities: Better Outcomes Require Better Practices

  Not all approaches to ESG are created equal—why a focus on integration, forward-looking dynamics and active engagement is the key to unlocking long-term returns in equity investments.

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• The Evolving Opportunity in Distressed Debt

  As the pandemic recedes, some companies may have a harder time managing higher debt levels than others—and as weaker issuers undergo restructurings or other stressed situations, there may be opportunities for investors to deploy more capital into distressed debt strategies.

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• ASEAN: Where Positive Demographics Meet Supportive Secular Trends

  Recent market volatility has created what we view as an attractive opportunity in ASEAN equities—particularly to tap into selective structural growth stories at compelling valuations.

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• Hong Kong-China Equities: Accelerating Areas of Opportunity

  As COVID-19 slowly loosens its grip on China, it has become clear that many of the long-term structural trends shaping the markets remain intact or have even accelerated—creating investment opportunities in Hong Kong-China equities.

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• Investor Series: Private Assets for Insurers

  Insurance investors face unique challenges in any environment but especially against today’s backdrop of continued low rates and a global economic slowdown. Barings’ Ann Bryant and Eric Lloyd discuss strategies for incorporating private assets as part of the solution.

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• How the Pandemic Changes Real Estate

  The global pandemic is changing the way we live, work and play. Such behavioral changes have been felt acutely across commercial real estate markets, and the impact may only accelerate from here. But which changes are short term and which are here to stay?

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• High Yield: Liquidity Abounds, But What Lies Ahead?

  Ample liquidity from central banks has driven a significant recovery across markets, including high yield. But with much uncertainty still ahead, we see benefits to moving up the capital structure and considering secured assets.

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• Investment Grade Credit: Whatever It Takes

  After the historic rollercoaster ride IG credit took in the first quarter, U.S. policymakers seem to have won the day, at least for now—with their own version of the phrase made famous by former ECB President Mario Draghi: Whatever it takes.

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• CLOs: Looking Down the Road to Recovery

  CLOs rallied in the second quarter as liquidity returned and supply/demand dynamics began to normalize. While opportunities have emerged—particularly in high-rated tranches and new issue BBs—active management is key.

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• EMD: Further Room to Run?

  Emerging markets debt rallied strongly in the second quarter—and while risks remain ever-present, the asset class may benefit from continued monetary stimulus and the potential for a sharper economic bounce-back in the second half of the year.

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• High Yield: The Power of Flexibility in Volatile Times

  The journey back to normalcy will likely be punctuated with stops and starts. But opportunities will emerge—and being in a position to capture the upside is key.

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• 2020 Views from the LPAC

  Over our 25+ years of investing across private markets, Barings has held hundreds of Limited Partner Advisory Committee (LPAC) seats. From this vantage point, we offer the following insights on the issues and actions currently under debate between LPs and their GPs.

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• Real Estate: The Critical Role of Asset Management in a Crisis

  Asset management is vital to long-term value creation in real estate debt and equity markets—particularly when it comes to navigating crises like COVID-19.

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• ESG: The Intent Beyond the Income

  ESG is playing an increasingly meaningful role in fixed income investing. At Barings, we formally integrate ESG across our corporate credit asset classes—but the way we apply our analysis is necessarily different due to the nuances of each market.

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• ESG in Fixed Income: Progress Over Perfection

  Fixed income investors have been slower to adopt environmental, social and governance factors, but change is afoot. Barings’ experts explain how fixed income managers can—and are—driving tangible change among corporate debt issuers—and why investors need to pay attention.

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• The EM Default Picture: More Nuanced Than Headlines Imply

  The coronavirus pandemic is creating short-term and long-term challenges for emerging markets (EMs). But not all sovereign and corporate issuers can be painted with the same broad brush, and placing too much weight on overly dire forecasts may result in missed opportunities.

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• Private Credit: The Turn of the Cycle

  Co-Heads of Global Private Finance, Ian Fowler and Adam Wheeler describe the evolving conditions in the North American and European private credit markets and where opportunities may arise in the months and years ahead.

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• Four Benefits of Senior Secured Bonds in an Uncertain Environment

  Times of volatility can also yield opportunity if navigated carefully—and in the event of widespread defaults, senior secured bonds can offer some particularly compelling benefits.

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• What's Next for Private Credit?

  Now that the proverbial rubber has met the road, many investors are questioning what’s in store for private credit in the months (and years) ahead. In many ways, the current volatility is setting the stage for significant opportunities—but managing the downside is critical.

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• EM Debt: Downturns, Defaults & Diamonds in the Rough

  Barings’ Omotunde Lawal and Cem Karacadag explain how COVID-19 is impacting the economies of emerging markets, and how lower oil prices and loose monetary policies may influence the future default picture.

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• EM Short-dated Debt: A Diamond in the Rough?

  COVID-19 and lower oil prices have led to indiscriminate selling across EM corporate debt, creating a potentially compelling opportunity in the shorter-dated, higher-yielding segment of the market.

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• Six Considerations for LPs Navigating Private Market Uncertainty

  When it comes to finding clarity in an environment mired in uncertainty, an open dialogue between LPs and GPs is as critical as ever.

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• Equities: Finding Long-term Growth Amid Current Volatility

  Barings’ Global Head of Equities, Dr. Ghadir Cooper, discusses the impacts of COVID-19, the opportunity for companies capitalizing on structural growth trends from technology to demographics, and the integral role of ESG in fundamental analysis.

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• Taking the Bite Out of High Yield’s Tail Risk

  A new buyer has arrived on the scene of U.S. high yield markets, and it happens to be the biggest buyer of them all: the U.S. Federal Reserve.

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• Investment Grade Credit Markets Make an About-Face

  As investment grade markets pivot sharply, with spreads reaching their widest level in over a decade, investors turn disproportionately toward quality and liquidity.

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• EM Debt: When Prices Decouple from Fundamentals

  Dr. Ricardo Adrogué discusses how the global pandemic has impacted emerging markets, including implications for sovereign and corporate debt markets, as well as interest rates and currencies.

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• High Yield: Finding Value in a Landscape Rife with Risk

  Concerns surrounding COVID-19, lower oil prices and a global recession have weighed heavily on markets—including global high yield bonds and leveraged loans. While value opportunities are emerging, the landscape is punctuated with risks that must be carefully navigated.

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• High Yield: Navigating COVID-19

  Barings’ Martin Horne puts the recent volatility in high yield markets into context and describes how the Barings team is both managing risks and finding value opportunities through the crisis.

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• EMD: Finding Fundamental Value Through the Storm

  The rapid spread of COVID-19, the precipitous fall in oil prices and the related shock to the global economy have sent markets—including EMD—into a tailspin in recent weeks. In this piece, we explore the resulting challenges and discuss opportunities beginning to emerge.

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• Distressed Debt: Despite Challenges, Opportunities Persist

  Recent market and economic volatility may be the trigger that distressed debt investors have been waiting for, but capitalizing on opportunities will require a different playbook than those of past cycles.

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• 2020: An Inflection Point for EM Currencies?

  With the financial crisis more than a decade behind us, the global financial system seems poised to begin re-leveraging. This process, which would likely take years to play out, would provide a source of funding for EM currencies, and represent a significant tailwind.

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• A Bright Spot in Higher-Yielding EM Corporate Debt

  Many EM regions have been engulfed in uncertainty for weeks or months. While these situations certainly represent risks, we also continue to find value—often in globally diversified companies that have been unfairly punished by markets because of where they’re domiciled.

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• Amid Rising ‘Mequity’ Risk, Boring Can Be Beautiful

  In both the U.S. and Europe, there is significant pressure both at the top and bottom ends of the middle market. As a result, we’re seeing potentially attractive value today in the more traditional, true middle market.

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• The Continued Democratization of Private Equity

  Private equity is an asset class that has traditionally been available only to very large, sophisticated institutional investors. But this is changing rapidly—a trend we expect to accelerate in 2020.

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• Comeback Time for International Equities?

  Because the U.S. equity market is broad and deep, there will almost always be opportunities—but in aggregate, we think international equity markets may be more compelling over the next year.

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• CLOs: Triple C's and Market Unease

  Taryn Leonard and Melissa Ricco, Co-Heads of Barings’ Structured Credit Investment Team, discuss the recent loan market weakness, and how technical pressures are creating value opportunities in the CLO market.

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• EM Debt: Warding Off Headwinds with Active Management

  Ricardo Adroguè, Head of Global Sovereign Debt and Currencies, addresses the many risks facing the global economy—specifically China, Argentina and the Middle East—and explains why active management is critical to performance.

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• Are High Yield Investors Being Compensated for Risks?

  In the context of today’s fundamental backdrop and default outlook, spread levels suggest investors are being fairly compensated, relative to other points in the cycle, for the amount of risk they are taking.

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