Jupiter: Corporate Bonds: Balancing risk and reward

No holidays for your investment-grade corporate bond exposure

Join fund managers Adam Darling and Harry Richards, in conversation with Ariel Bezalel as they discuss the merits of a flexible approach to investment-grade corporate bonds, and how it is still possible to manage downside risks while remaining invested.

Having steered their clients’ investments through three tumultuous years in the credit markets, Harry and Adam will explore opportunities and risks in a range of issuers and sectors –including, topically, bonds issued by airport owners – arguing that the post-Covid “re-opening” trade is largely priced-in to some areas of the market, but that pockets of value remain elsewhere.

As part of a “deep dive” into the credit quality spectrum, they will also consider some common myths about the risks associated with holding A-rated credits relative to their BBB-rated peers, and will contrast the performance and behavioural characteristics of financial-sector credits relative to non-financial corporate peers. To provide context to their outlook, the managers will review how their strategy’s risk exposure has flexed over time, helping to generate attractive risk-adjusted returns in both bull and bear market conditions, in contrast to some peer strategies which have typically maintained a more constant level of risk exposure.

Over the course of the discussion, the managers will shed light on why investment-grade credit is seen as a distinct strategy at Jupiter, requiring specific skills and knowledge. In particular, they will highlight how environmental, social and governance (ESG) considerations are firmly embedded into their credit selection process, and why to do so effectively requires a truly active approach.