In this #FundManagerChat podcast, Chris Sawyer, manager of the Barings Global Senior Secured Bond Fund, outlines his case for this asset class.
Chris discusses how senior secured bonds differ to broader high-yield bonds and examines how their place in a company’s capital structure affects their performance characteristics. He also outlines factors influencing his regional and sector positioning and explains his portfolio composition in the current interest rate and macroeconomic environment.
Chris also considers the positioning of the business and credit-default cycle and how the extra principal protection offered by secured bonds may have been overlooked by traditional high-yield investors.
Running Order
| Run Time |
Topic |
| 00:20 |
Tell us about senior secured bonds. Why might they be attractive? |
| 01:05 |
What’s their relationship to high-yield bonds in terms of spreads and risk? |
| 02:40 |
Outline potential liquidity risk and their correlation to equities |
| 03:45 |
What impact does the current interest rate regime have on your process? |
| 05:00 |
What are the implications of the current positioning of the business cycle on your fund? |
| 07:30 |
Is the current inflation outlook of any concern to you? |
| 09:40 |
What are your regional preferences in the fund and why? |
| 10:40 |
How is your fund positioned at the stock selection level? |
| 12:00 |
Why should investors consider an allocation to global secured bonds in their fixed income component? |
|
Chris is chatting with Jake Moeller, Head of Lipper UK and Ireland Research at Refinitiv, in London on May 30, 2019.
About Chris Sawyer
Chris Sawyer, Barings
Chris Sawyer is a member of Barings’ European High Yield Investments Group and serves as a member of the European High Yield Investment Committee.
Chris is responsible for the portfolio management of several high yield strategies and also manages the firm’s European high yield trading operations. Chris has 13 years of industry experience, joining Barings in 2005.
Prior to joining the Trading team in 2008, Chris worked in the Portfolio Monitoring team where he was responsible for the performance analysis of individual portfolio assets.
Chris holds a BSc in Economics and Business Finance from Brunel University
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Disclaimer:
This material is provided for as market commentary and for educational purposes only and does not constitute investment research or advice. Refinitiv cannot be held responsible for any direct or incidental loss resulting from applying any of the information provided in this publication or from any other source mentioned. Please consult with a qualified professional for financial advice. The author does not own shares in this investment.
