Why allocate to a liquid alternative credit strategy?

INSIGHTS
1 minutes to read by  BlueBay Fixed Income team Mar 14, 2024

Within liquid alternatives, there has been growing interest in alternative fixed income and credit strategies. These strategies make use of a wide range of tools, such as shorting, leverage and derivatives, to deliver attractive absolute returns and low correlation to traditional asset classes.

Key facts:

  • Alternative fixed income and credit strategies are of interest to investors due to the significant opportunity presented by dispersion, asymmetry and volatility in debt markets.

  • In liquid alternatives, family offices have a flexible and liquid solution that can provide access to a wide variety of debt instruments.

  • Liquid alternative fixed income strategies can be valuable in helping to navigate a more challenging investment environment.