![Michael Hyman](/content/dam/invesco/uk/en/bios/Michael%20Hyman1.png)
Head of Global Credit Strategies of Global Investment Grade and Emerging Markets
Michael Hyman
We believe our multi-sector credit strategy provides the dynamic approach necessary to generate returns in the current market landscape. We build a diversified portfolio that can take advantage of market dislocations to aim for high yield-like returns at comparatively lower risk levels.
The Invesco Multi Sector Credit strategy applies a discretionary approach across core credit asset classes to pursue attractive strategic beta, tactical beta, and security selection alphas opportunities that can potentially enhance overall income and total returns.
The Invesco Multi Sector Credit strategy looks to achieve a favourable total return over a full market cycle. We construct the strategy with the aim of generating a level of return approaching that of the high yield bond market. At the same time, we aim for volatility and a correlation to equities that is lower than that of high yield bonds.
Our strategy applies a disciplined, research-intensive process that combines top-down and bottom-up analysis. With changing market conditions, this allows the investment team to actively implement a carefully constructed strategic allocation. This is diversified across four global credit sectors:
This strategic asset allocation forms the strategy‘s foundation, assigning equal amounts of risk to each sector (risk parity).
The investment team also employs well-defined tactical allocation ranges in order to target additional risk-adjusted performance. This allows the team to position the portfolio opportunistically as markets evolve.
We are also able to seek additional returns through fundamentally based security selection. These individual holdings within each sector focus on the team’s highest conviction ideas.
The Invesco Fixed Income team has been actively investing in fixed income markets since 1971 and has dedicated teams working in Atlanta, Chicago, Hong Kong, London, Louisville, New York and Tokyo. The team benefits from 223 fixed income investment professionals in 14 locations worldwide.
We leverage our robust single sector capabilities, global credit and macro research platforms, and interconnectivity to provide multi-sector solutions to clients worldwide. Through global standards across credit and risk, Invesco's multi-sector team develops an integrated strategy based on market direction, risk positioning and asset allocation.
Our global presence allows us to look for pricing advantages between regions for similar or identical credit risk, advantages which we aim to pass on to our clients through enhanced performance.
Our team believes that a dynamic, multi-sector approach to credit investing is best adapted to capturing potential value and opportunity, especially in today’s complex market landscape.
The multi-sector team has three fund managers supported by an experienced team of four sector portfolio managers (High Yield, Bank Loans, Emerging Markets, Global IG) and Invesco Fixed Income’s extensive team of global research analysts.
Yields remain attractive and may maintain positive relative value
Significant focus on the uncertainty of the US macroeconomic backdrop and its potential implications on the market remain top of mind for investment opportunities. Against this cautious outlook, we asked the experts from Invesco’s bank loan, direct lending and distressed credit teams to share their views as the third quarter of 2024 wraps up.
Monthly fixed income update
Fixed income markets in July saw yields rally in response to weaker economic data which brought forward expectations of rate cuts. Read our latest thoughts on how fixed income markets performed during the month and what we think you should be looking out for in the near term.
Global Fixed Income Strategy Monthly Report
In our regularly updated macroeconomic analysis we offer an outlook for interest rates and currencies – and look at which fixed income assets are favoured across a range of market environments.
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At Invesco, we have extensive experience investing in EM debt and working with institutional clients to provide tailored solutions that can meet their exact requirements.
Euro Corporate Bonds: how we’re positioning portfolios in the current market
Julien Eberhardt, Fund Manager, in the Invesco Fixed Income Europe team shares his thoughts on the key headwinds that have impacted bond market performance in 2024. Find out why he is more positive on rates in Europe than the US and in cautious on credit risk and how this is influencing his management of the Invesco Euro Corporate Bond Fund in our Q&A.
Private credit: A case for senior loans
The uncertain US macroeconomic backdrop with inflation pressures, interest rate hikes, and a potential recession was a significant focus throughout 2023. Despite these challenges, we see three compelling reasons to consider investing in senior secured loans now.
Municipal Bonds: the case for inclusion in European Insurers' portfolios
US municipal bonds are worth considering for European insurers portfolios as they may provide a source of diversification and for their relative value compared to Euro corporate bonds.
2024: the return of the bond market
Bond markets experienced high levels of volatility in 2022 and 2023 thanks in large part to the raft of interest rate rises. As things start to settle, we explore the opportunities for bonds this year.
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Data as at January 2020, unless otherwise stated. By accepting this document, you consent to communicate with us in English, unless you inform us otherwise. Where individuals or the business have expressed opinions, they are based on current market conditions, they may differ from those of other investment professionals and are subject to change without notice.