Investment grade credit 

04 May 2020

Downgrades present both risks and opportunities.

04 May, 2020

BBB-rated corporate credit, both its growth and declining credit quality, has been an area of focus for Mercer as the credit cycle extended. Recent volatility, spurred by COVID-19’s economic fallout and collapsing energy prices, has brought these concerns to fruition. As the number of downgrades increase from very low levels, we want to ensure our clients are prepared to avoid forced-seller risk and to take advantage of potential opportunities.

The steps to mitigate risks will vary.

In this paper, we provide a framework offering different approaches for different investor types, including:

  • Constrained
  • Standard
  • Opportunistic

Download the paper to learn what steps to consider for your portfolio.

Please see Important Notices for further information.

Related solutions
Related insights