Bond Investors Must Be Flexible to Succeed

When analysing a company, fixed income investors need to apply a different lens to stock pickers and look at the capital structure from a bondholder’s perspective

Hermes 5 November, 2015 | 1:05PM
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Morningstar's "Perspectives" series features investment insights from third-party contributors. Here, Fraser Lundie, co-head of Credit at Hermes Investment Management explains why security section is a crucial element of his investment approach.

Investors need to look at credit in a different way. Within the credit world, there is a sense that if you get the company right and avoid default you will have done your job as a bond investor. While this is a neat premise, we believe it is a gross oversimplification of the asset class.

The need for flexibility is vital at a time where a lot of money is trapped in narrow mandates

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About Author

Hermes  Hermes is a multi-asset fund manager offering global institutional and pension fund clients access to a broad range of specialist, high conviction investment teams.

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