Bahrain, September 20 (BNA): Investcorp, the global provider and manager of alternative investment products, today released its quarterly “House View” report on the state of global credit markets.
The report reviews the key trends driving performance and market dynamics in US and European credit and presents the company’s outlook to the end of 2021.
The company is outperforming the global credit market in the second half of 2021, in light of the continued global economic recovery, favorable credit fundamentals and strong loan demand.
“With strong global growth in recent months and a supportive economic backdrop, we remain optimistic about the future performance of the global credit market through the end of the year,” said Jeremy Goss, global head of credit management at Investcorp.
While the COVID-19 Delta variant has emerged as a potential deterrent to growth expectations, credit fundamentals are nonetheless strong and improving, and CLO issuance has reached record levels to meet the high demand for floating rate loan assets. We expect the positive trends we saw in the first half to continue through to the end of the year.”
Philip Yates, Head of European Credit Funds at Investcorp, said the European credit market continued to show resilience in the third quarter of this year, with record levels of new issuance, balanced supply/demand dynamism and virtually no defaults.
“While the leveraged loan market is showing the first signs of indigestion from the large volume of year-to-date IPOs, issuance levels have underpinned overall market growth and liquidity,” he said.
“We expect this growing market to create more opportunities to diversify risks and rotate our portfolios in order to increase returns.”
David Moffett, co-head of US credit management at Investcorp, added that the US credit market has benefited from similar tailwinds to its European counterpart this year, including strong demand for leveraged credit, improved credit fundamentals, lower defaults, and record loan issuance. .
“We continue to drive value and superior performance in our strategies through an active trading and portfolio management approach focused on protecting key assets while creating opportunities for total return and convexity,” he said.
Investcorp Credit Management is a global credit manager with more than $14 billion in assets under management with a history of more than 16 years investing across global credit markets.