Multi-asset credit has been a popular choice for investors over the past decade and that popularity was fuelled, in part, by low yields in traditional (investment grade) credit markets. As central banks around the world dropped interest rates to near zero, the hunt for yield pushed investors into higher-yielding credit such as high yield and emerging markets. MAC grew out of this demand, offering a convenient ‘package’ of higher-yielding credit in a single vehicle.
The question is, as interest rates start to stabilise at higher levels, does the rationale for MAC still stand? In this paper, we analyse the merits of MAC in today’s world.
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