Markets have been distorted by unprecedented central bank intervention. In spite of talk of policy normalisation, the burden of debt is a significant constraint. Finding opportunities in credit markets will require innovative investment approaches, writes Insight Investment’s Head of Credit, Alex Veroude
In Through the Looking Glass, and What Alice Found There, Lewis Carroll places his eponymous character in a fantastical world which is a reflected vision of her own house. Investors this summer can have been forgiven for feeling that they too had entered a strange parallel universe. At one point $4 trillion of debt globally traded at negative yields and at their lows French, German and Swiss sovereign yields were negative out to five, nine and 15 years respectively.
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