Investing Through Inflation

In an environment characterized by decades-high inflation and rising rates, some of the most compelling opportunities are likely to be in asset classes that are naturally positioned to survive—and maybe even thrive.

Floating-Rate Assets

SHORT-DURATION SOLUTIONS

INFLATION BENEFICIARIES

I N F L A T I O N T O O L K I T

Floating-Rate Assets

Assets with floating-rate coupons can provide a natural hedge against rising rates, such as broadly syndicated and middle market loans, as well as CLOs—which offer the added benefit of structural protections.

Public Fixed Income

High Yield: Reasons for Cautious Optimism

As investors braced for higher rates and an impending recession, second-quarter markets performed with surprising resilience. Together with a higher-quality market and attractive yields, the case for high yield looks compelling.

Short View – 4 min read

Public Fixed Income

CLOs: A Bifurcated Field of Opportunities

While the likelihood of higher-for-longer interest rates continues to present challenges, it has also created attractive opportunities across the CLO market—particularly in higher quality tranches.

Short View – 3 min read

Real Estate

The Evolving Opportunity in Real Estate Debt

While the current landscape may be challenging to navigate, it is also shaping a compelling opportunity in real estate debt—from core to opportunistic lending.

Insights – 5 min read

I N F L A T I O N T O O L K I T

Short-Duration Solutions

Short-duration strategies, from global high yield bonds to short-dated bonds in developed and emerging markets, look compelling in a rising rate environment—given that they have lower duration risk and are therefore less sensitive to changes in rates.

Public Fixed Income

IG Credit: Supportive Backdrop but Risks Remain

While there are risks to monitor, higher yields, supportive technicals, and a still-solid fundamentals picture suggest that IG corporate credit continues to look attractive.

Short View – 3 min read

Public Fixed Income

EM Debt: Reassessing Risk Amid Resilience

Tighter spreads and improving sentiment drove strong second-quarter performance for EM debt. While adding risk may not seem prudent given the economic weakening that potentially lies ahead, neither does reducing risk.

Short View – 4 min read

Public Fixed Income

High Yield: Finding Value in a Volatile Environment

Chris Sawyer, Head of European High Yield, discusses current conditions in the global high yield market and explains how they are creating the potential for attractive total returns.

Webinar – 8 min watch

I N F L A T I O N T O O L K I T

Inflation Beneficiaries

A number of sectors have historically been more resilient than others in an inflationary environment. Real estate assets, and companies that produce or distribute natural resources and commodities, can benefit from a rise in prices.

Public Equities

The Crucial Role of Resources in the Great Energy Transition Debate

It is becoming increasingly clear that to improve the chances of achieving Net Zero by 2050, natural resources companies are a key part of the solution—not the problem.

Insights – 8 min read

Real Estate

European Real Estate: Darkest, Then a New Dawn?

The year ahead likely marks the trough in the property cycle, which will have implications for investment outperformance for years to come. The Barings Real Estate team discusses.

Insights – 8 min read

Real Estate

Real Estate Debt: Headwinds and Tailwinds

Head of Real Estate Debt Portfolio Management, Nasir Alamgir, provides an overview of the factors—both positive and negative—shaping the outlook for commercial real estate debt.

Podcast – 30 min listen

Featured Strategies

Public Equities

Public Fixed Income

Investments in the listed asset classes involve risks, including the potential for default, low recovery, and low liquidity, all of which can result in a loss of a substantial portion of the investment. Investing in non-US securities may also involve a higher risk.