In order to efficiently extract value from credit while seeking a measure of protection from the key risks, investors need more than just a large team; they need the right processes for continually monitoring what can go wrong. In a world in which the credit cycle and economic cycle is maturing and corporate earnings are coming off the boil, now is the time to determine if your credit manager is best positioned to steer clear of these landmines while bearing in mind that no investment strategy or risk management technique can guarantee returns or eliminate risk in any market environment.
Gautam Khanna, CFA, CPA, is senior portfolio manager on the BNY Mellon Insight Core Plus Fund, at Insight Investment (a BNY Mellon company), leading the management of Insight's flagship US core, core plus and high yield strategies ($790.7 billion AUM).