The trend towards multi-sector credit strategies discusses the reasons why the multi-sector credit segment has become an increasingly popular choice for so many institutional investors. These strategies can be employed in a variety of ways to aid investors in meeting their goals.
For investors seeking to boost their fixed income allocations’ diversification, yield and risk-adjusted return potential, these strategies are a strong option to consider in today’s complex market environment. They can be included in one’s portfolio as a single offering to cover a portfolio’s overall credit allocation or as a complement to a broader set of fixed income strategies. The mix of potentially higher yields, lower risk and greater time and cost efficiencies contribute to multi-sector credit strategies appeal to investors.