Why credit matters

Janus Capital's Gibson Smith on why corporate credit now plays a critical role in generating superior risk-adjusted outperformance.

The Janus fixed income team has long held the view corporate credit matters in fixed income. In mid-2009, we observed the recent dislocation in the fixed income market would transform the way investors and asset managers approach fixed income investing, and predicted corporate credit would likely play a critical role in generating superior risk-adjusted outperformance. At the centre of our thesis was the convergence of agency mortgages or mortgage-backed securities (MBS), government agencies and US Treasury sectors of the fixed income market into one large government sector, leaving corpora...