Corporate debt remains a good option despite possible new stimuli

Uncertainty continues to condition world markets. Pese al alivio que supuso el mes pasado tras el crash sufrido en marzo, el miedo a los efectos de the pandemic en la economía global no se ha evaporado. Cada vez son más los que especulan con que los bancos centrales they will expand their stimuli soon para suavizar la recesión. Un contexto en el que la volatilidad hará acto de presencia y seráconducive to corporate bond selection experts“, ensures the manager Jupiter AM, whose bets include alcoholic beverages and fast food companies.

The viral outbreak has caused a historical paralysis of world economic activity and, a, an unprecedented crisis. The gross domestic product (START) de la Eurozona decreased by 3,8% in the first trimester. Likewise, the united states economy, the largest in the world, sufrió your first contraction (-4,8%) in six years.

In the face of the deep recession, Both governments and central banks have activated huge fiscal and monetary stimuli. But the fund manager Jupiter AM, along the same lines as other experts, vencomplicadoque todas estas medidas hayan tenidoun gran impacto” in front of almost complete stagnation of the economy. For this reason, he predicts that the efforts of central banks will increase and, states, corporate debt will continue to be a good investment option.

In a report this month, Ariel Bezalel, head of strategy for the firm, and Harry Richards, fund manager, apuestan poruna postura defensivapara afrontar estaexcepcionalcrisis. In your opinion, volatility will continue in the markets, por lo que se produciráninfinidad de desajustes en los precios de la deuda corporativa”, what they see as an opportunity.

In fact, Jupiter AM presume en el documento de haber encarado los recientes vaivenes apostando por la deuda denegocios defensivos capaces de sobrevivir al ciclo”. “That is to say, aquellos backed by tangible assets and solid income and profits para atender los pagos de su deuda”, explain Bezalel and Richards.

From your bets, both experts highlight the sectors of alcoholic beverages and fast food. Destacan así a compañías como AB InBev, Pernod Ricard, Neat Dr Pepper y McDonald's. También señalanotras incorporacionesa su cartera como la empresa de semiconductores Broadcom, British packaging Mondi, the 'teleco’ Vodafone, the manager of HCA hospitals and technology companies like Oracle.

But the manager does not talk about corporate debt as a past opportunity, but also future. In this sense, Richards y Bezalel aseguran que en el mercado seguirá siendo vital growth and liquidity, “dos elementos que probablemente escaseen en un futuro inmediato”.

El tira y afloja entre los estímulos contundentes y el deterioro de los fundamentales probablemente continúe durante algún tiempo”, anticipate. This will mean, they say, “un contexto de mercado propicio para los expertos en selección de bonos corporativosque podráncapture bullish potential in well positioned companies para capear las turbulencias económicas”.

Source: the Economist.- 21/05/20.