Downgrades present both risks and opportunities.
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:
Download the paper to learn what steps to consider for your portfolio.