Credit remains attractive in this heightened risk environment

  • 19 April 2023 (5 min read)

Following the relentless tightening of monetary policy in 2022 and into 2023, all-in yields for investment grade credit have risen materially, on higher government yields and wider credit spreads, placing credit in a positive spotlight. However, the degree and the pace of interest rate hikes was bound to place stress on the financial system adjusted to a low-rate environment. This quarters’ U.S and European bank weakness is one of the signs that higher real and nominal rates are posing financial risks.

Ecaterina Bigos and Frank Olszewski delve into US investment grade credit exploring what recent market events may mean for this asset class and the factors we think are important in order to build a successful US Investment Grade portfolio.

Download the full document
Download document (333.43 KB)

Related Articles

Fixed Income

Why now may not be the time to sell inflation-linked bonds

  • by Jonathan Baltora
  • 17 May 2023 (5 min read)
Fixed Income

Euro credit market review - May 2023

  • by Gonzague Hachette
  • 10 May 2023 (5 min read)
Fixed Income

US Short Duration High Yield Market Update - May 2023

  • by Peter Vecchio , Vern Bond
  • 09 May 2023 (5 min read)


    This market communication is for informational purposes only and does not constitute investment research or financial analysis relating to transactions in financial instruments as per MIF Directive (2014/65/EU), nor does it constitute on the part of AXA Investment Managers or its affiliated companies an offer to buy or sell any investments, products or services, and should not be considered as solicitation or investment, legal or tax advice, a recommendation for an investment strategy or a personalized recommendation to buy or sell securities.

    Due to its simplification, this document is partial and opinions, estimates and forecasts herein are subjective and subject to change without notice. There is no guarantee forecasts made will come to pass. Data, figures, declarations, analysis, predictions and other information in this document is provided based on our state of knowledge at the time of creation of this document. Whilst every care is taken, no representation or warranty (including liability towards third parties), express or implied, is made as to the accuracy, reliability or completeness of the information contained herein. Reliance upon information in this material is at the sole discretion of the recipient. This material does not contain sufficient information to support an investment decision.

    Issued in the UK by AXA Investment Managers UK Limited, which is authorised and regulated by the Financial Conduct Authority in the UK. Registered in England and Wales No: 01431068. Registered Office: 22 Bishopsgate London EC2N 4BQ