Plenisfer Investments I Fixed Income: sectors to focus on nowadays
Co-Chief Investment Officer of Plenisfer Investments SGR
In a late economic cycle like the current one, with growing dispersion of performances and the expected increase of corporate refinancing activity starting from 2024, where to seek fixed income yield?
At Plenisfer we believe that corporate bonds can generate attractive returns, even taking a moderate level of risk, if you look across all the credit spectrum and carefully select individual opportunities at global level.
In particular, there are European and US quality issuers with a sustainable level of debt and able to generate high cash flows. We believe it should be preferred the short- to medium-term end of the yield curve where the credit spread combines with the highest interest rates in 15 years. In terms of ratings, this means focusing on the crossover area, i.e. on corporate bonds between triple B and double B.
In our opinion, energy, financial and telecommunications, as well as - albeit marginally- airlines, are among the sectors to look at for quality issuers today.