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Credit Investors Build Cash Buffers Against Volatility Storm

  • Funds stashing ‘dry powder’ to wait for bargains to appear
  • ‘Lower spreads with ever greater risk’ not appealing to Nomura
Updated on

Heading into this volatile week caused by the omicron bombshell and Federal Reserve hawkishness, credit investors were already starting to rebuild their defensive buffers from below-average levels. 

Now amid renewed pandemic and inflation jitters, institutional managers from Invesco Asset Management to Banque Lombard Odier & Cie SA have fresh reasons to ramp up their cash positions to buy assets cheaper down the line.