Flash Note

Focus on credit: what if fear created opportunities?

02.12.2020

Company defaults are expected to rise in the current crisis. What are the implications for credit investors?

Check out what Pierre Verlé, Head of Credit and Fund Manager at Carmignac, has to say in this previously unreleased interview with Didier Saint-Georges.

Past performance is not necessarily indicative of future results.

Credit markets driven by fear offer greater opportunities – because fear is what creates bond-picking opportunities


KEY TAKEAWAYS

  • Backdrop

    An environment characterised by major concerns over rising default rates, yet with huge amounts of capital allocated to corporate credit as a whole

  • Implications

    A highly segmented market, spanning bonds considered safe investments and thus extremely popular along with less straightforward instruments whose potential is underrated by the market

  • Our strategy

    We thoroughly analyse issuers and estimate their fundamental cost of risk to be able to hunt down attractive opportunities and thereby create value.

Discover our credit solutions:



Carmignac Portfolio Unconstrained Credit: The recommended minimum investment horizon is 2 years. The Fund’s score on the risk scale is 4. Carmignac Credit 2025: The recommended minimum investment horizon is 5 years. The Fund’s score on the risk scale is 3.