POWERED BY MOMENTUM MEDIA
Credit favoured despite market doubts
Australian asset owners and managers are keen on investing more in credit markets this year even as they remain apprehensive on market uncertainties.
That is the finding of the BNP Paribas Capital Markets Outlook survey, which also found that 50 per cent of respondents feel official rates will rise in the second half of 2015.
A third believe rates will rise later this year or early next year, while only 16 per cent expect interest rates will go down.
Half of respondents predicted local spreads to become slightly tighter over 2014, while a third predict it will remain stagnant.
Two thirds think asset-backed securities and structured products have the best value, while sovereign debt was the least valued.
But several international credit issues are worrying market participants, including changes to US Federal Reserve Bank rate policy, a drop in China’s growth and another 'black swan’ issue in Europe.
“Overall, it is interesting that investors remain so positively disposed to credit as an asset class despite the ongoing contraction in credit spreads,” head of fixed income at BNP Paribas in Australia James Hayes said.
“The market is looking more optimistic than it has for some time.”
Half of respondents have less than 10 per cent of their credit allocated offshore, the survey found.
Recommended for you
Economic growth was weaker than expected, once again highlighting an economy largely sustained by population growth and government spending.
In this latest edition, Anna Shelley, CIO at AMP, shares the fund’s approach to current market conditions and where it continues to uncover key opportunities.
The mega fund has announced a $2.2 billion investment in a leading data centre platform, bringing its global real assets portfolio to nearly $60 billion.
In this latest edition, Australian Retirement Trust’s head of global real assets Michael Weaver explains the fund’s approach to finding new opportunities as it surpasses $300 billion in funds under management.
TOP PERFORMING FUNDS
ACS FIXED INT - AUSTRALIA/GLOBAL BOND
Fund name
3y(%)pa
1
DomaCom DFS Mortgage
90.28 3 y p.a(%)
2
GAM LSA Private Shares AU I
37.08 3 y p.a(%)
3
DomaCom Lot 21 Chellaston Road Munno Para West SA 5115 Australia
31.44 3 y p.a(%)
4
Fidante Credit Suisse Global Private Equity
31.12 3 y p.a(%)
5
Global X GlobalX FANG+ ETF
28.28 3 y p.a(%)
