Investcorp Credit Management releases Q3 “House View” on global credit markets

Bahrain, Sept. 20 (BNA): Investcorp, a global provider and manager of alternative investment products, today released its quarterly “House View” on the state of global credit markets. The report reviews the key trends driving performance and market dynamics in US and European credit and provides the firm’s expectations through year-end 2021. The firm is bullish on global credit market performance in the second half of 2021, in light of continued global economic recovery, favorable credit fundamentals and strong loan demand. “Amid strong global growth in recent months and a supportive economic backdrop, we continue to remain optimistic about the future of global credit market performance through the end of the year,” said Jeremy Ghose, Global Head of Investcorp Credit Management. “While the COVID-19 Delta variant has emerged as a potential deterrent to growth expectations, credit fundamentals are nonetheless solid and improving and CLO issuance has reached record levels to meet high demand for floating rate loan assets. We expect the favorable trends we saw in H1 to stay through year-end.” Philip Yeates, Head of European Credit Funds at Investcorp said that the European credit market has continued to demonstrate its resilience in Q3 this year, with record levels of new issuance, a rebalanced supply/demand dynamic and almost non-existent defaults. "While the leveraged loan market is showing the first signs of indigestion from the high volume of primary issuance year-to-date, issuance levels have supported the market’s overall growth and liquidity," he said. "We expect that this growing market creates more opportunity to diversify risk and rotate our portfolios in order to increase yields.” David Moffitt, 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, improving credit fundamentals, low defaults and record loan issuance. "We continue to drive value and outperformance in our strategies through a front-footed active trading and portfolio management approach focused on protecting principal while also finding opportunities for capturing total return and convexity," he said. Investcorp Credit Management is a global credit manager with over $14 billion in assets under management with a history of more than 16 years in investing across global credit markets.