US Credit
Our US credit strategies aim to deliver attractive risk-adjusted returns and capture opportunities for current income and total return.
Our philosophy
Our US credit strategies leverage our global credit platform to take advantage of the increasingly global USD corporate investment universe.
- Our risk diversification and multiple alpha sources seek to deliver superior risk-adjusted returns
- Portfolio calibration and risk monitoring support consistent results within pre-determined guidelines
Our process
We use our local credit management and credit research teams to determine issuer, sector and credit allocations.
- Portfolio managers leverage the insights of our credit analysts and global research platform to actively allocate across sectors and ratings
- Identifying, pricing and combining risks is at the core of our investment approach
HSBC strengths
- Our global footprint is advantageous for US-focused strategies to cover the increasingly global nature of the US credit market
- Proprietary fundamental and valuation research tools are critical to our investment decisions and our risk calibration techniques
- Over 40 sector specialists cover the global credit universe across investment grade, cross-over and high yield names
US Investment Grade Credit
- Aims to capture attractive opportunities for current income and total return potential within USD investment grade corporate bonds.
- The strategy leverages HSBC’s global credit research platform in a market that has seen steady growth in Yankee issuers.
- With a focus on risk-adjusted returns, the strategy uses a well-diversified portfolio to deliver returns and limit issuer-specific risk.
US High Yield
Aims to capture attractive opportunities for current income and total return potential within US high yield corporate bonds.
- The performance of our US High Yield strategy rests on our careful approach to risk, the knowledge of our global teams and their deep sector and company knowledge.
- The strategy invests predominantly in higher-quality high yield corporate credit with the flexibility to invest in investment grade or CCC rated bonds opportunistically. We invest in CCC’s on a tactical basis as we believe that CCC’s do not add value from a risk-adjusted return perspective over the full credit cycle.
- Our global team of analysts focus on individual credits, tracking them through their life cycle, to provide coverage continuity and thorough knowledge of fallen angels that become part of the high yield universe.
US Short Duration
Following detailed discussions and collaboration between the client and portfolio manager, the strategy is tailored to meet client-specific goals for liquidity, capital preservation, and income generation using bottom-up credit selection and top-down strategic positioning.
Focus on
The value of investments and any income from them can go down as well as up and investors may not get back the amount originally invested. The value of the underlying assets is strongly affected by interest rate fluctuations and by changes in the credit ratings of the underlying issuer of the assets.