Tag: credit quality

Since 2018, sustainable fixed income indexing assets across the industry have more than doubled every year, with investors increasingly looking at sustainability as an important driver of returns. The pandemic has also accelerated reallocation within fixed income as traditional role of government bonds within portfolios has become increasingly challenged by a lower for-longer interest rate environment.

The macro environment has been deteriorating over the past few years and this has been exacerbated by the COVID-19 crisis. As a result, the credit market has been characterised by deteriorating credit quality and credit spreads. The key credit cycle indicators that we look at confirms this market phenomena.