Strategy Spotlight

PineBridge Global Opportunistic Credit

A Multi-Asset Credit Strategy for Evolving Markets

We believe income will continue to play an outsized role in investors’ returns this year, but a key question is how to intelligently de-risk portfolios without sacrificing yield. With volatility set to persist, we expect these dynamics could create opportunities in Global Opportunistic Credit, which seeks to capitalize on individual credits and issuers adjusting to evolving business conditions through multi-asset credit exposure.

Overview

PineBridge Global Opportunistic Credit (GOC) is a “best ideas” global multi-asset credit strategy. It seeks attractive risk-adjusted returns from the idiosyncratic risks of individual credits and issuers. To do this, it invests opportunistically across the spectrum of sub-investment-grade credit through an active, long-only, credit-focused approach.

Investment Universe and Approximate Size (USD)

US$1.4 tn

Global Bank Loans¹

US$1.3 tn

Global High Yield Bonds²

US$1.0 tn

CLO Debt Tranches³

US$300 bn

Stressed Debt⁴

As of 30 June 2024. For illustrative purposes only. Any views represent the opinion of the investment manager and are subject to change. ¹Source: S&P/LSTA Leveraged Loan Index. ²Source: BofA Merrill Lynch Global Research, BofA Merrill Lynch Bond Indices (US High Yield, European High Yield and Emerging Market High Yield). ³Source: BofA Global Research, Intex. ⁴Source: PineBridge Investments calculations based on a subset of the loan and high yield market. Stressed Debt represent an asset characteristic that spans asset classes.

Global Opportunistic Credit: Enhanced Yield Potential in Turbulent Times

Featured Insight

Global Opportunistic Credit: Enhanced Yield Potential in Turbulent Times

Discover where we’re finding relative value opportunities across the leveraged finance universe, geographies, and the risk spectrum.

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Philosophy

We believe global fixed income markets are constantly evolving, creating inefficiencies that cause prices to dislocate from their fair value. We seek to capitalize on these inefficiencies by investing in a countercyclical manner over a credit cycle through a disciplined, research-driven investment approach. Central to our approach is bottom-up credit analysis and security selection, which we use to uncover securities that we believe are priced inefficiently.

Opportunistic Positioning to Adapt to Evolving Markets

The strategy leverages idiosyncratic risks from the credit cycle and shifts between core and tactical allocations to seek the most attractive risk-adjusted returns.

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Source: PineBridge Investments. For illustrative purposes only. We are not soliciting or recommending any action based on this material. Any views represent the opinion of the investment manager and are subject to change.

Process

PineBridge’s broad global credit platform allows us to focus on what we feel are the most attractive risk-adjusted opportunities across regions and asset classes – in all types of markets.

Our investment process focuses on building a portfolio of our best ideas, which are uncovered through a research-driven credit process and by leveraging regular, formalized knowledge sharing between our teams of fixed income experts. We employ a proprietary credit scoring system and augment our security selection skills by leveraging long-standing asset allocation processes both within the team and throughout the firm.