Credit Investors Build Cash Buffers Against Volatility Storm
- Funds stashing ‘dry powder’ to wait for bargains to appear
- ‘Lower spreads with ever greater risk’ not appealing to Nomura
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Heading into this volatile week caused by the omicron bombshell and Federal Reserve hawkishness, credit investors were already starting to rebuild their defensive buffers from below-average levels.
Now amid renewed pandemic and inflation jitters, institutional managers from Invesco Asset Management to Banque Lombard Odier & Cie SA have fresh reasons to ramp up their cash positions to buy assets cheaper down the line.