CLOs provide an efficient, scalable way of investing in floating-rate loans while offering structural protection that has historically performed well through multiple credit cycles.
Ricardo Adrogue, Head of Global Sovereign Debt and Currencies discusses the Barings' team's increasingly positive view on the outlook for emerging markets debt.
CLOs continue to offer compelling opportunities for disciplined investors—especially as robust structures provide protection against some of the lingering macroeconomic headwinds.
In 30+ years of managing private credit, we have learned that a disciplined approach and a truly global platform are key to performing through economic cycles.
When it comes to emerging markets sovereign debt, successful engagement often comes from asking the right questions and monitoring the right metrics.
Markets will likely remain on edge in anticipation of a central bank policy pivot, but high yield continues to present compelling total return opportunities for investors willing to ride out the volatility.
In a potential recessionary environment, robust company balance sheets and normalizing yield levels are creating a compelling case for IG corporate credit.
While the ESG challenges facing smaller companies should not be underestimated, they also create opportunities for active managers to identify undervalued companies.
With the inflation and geopolitical fogs around the world dissipating, and a monetary policy pivot potentially in the cards, 2023 is shaping up to be a promising year for emerging markets debt.