Canadian Leadership Congress: Global Credit Opportunities and the New Normal

Polen’s Karl Dasher discusses the compelling options he sees in the market today for long-term investors

Discussion Highlights

Polen Capital President Karl Dasher recently sat down with David Scudellari, Senior Executive Managing Director and Head of International Investment at Alberta Investment Management Corporation (AIMCo) to discuss the global credit landscape. They covered a range of topics, including short-duration mispricing, primary and secondary markets, and regional developments in Latin America and Europe.

See the full interview here

  • This is not a dull time to talk credit. Several factors—from massive monetary and fiscal stimuli to changing labor market behaviors—have converged to create an unprecedented moment in the market. Some effects will still take months to materialize, as excess savings are absorbed, and weaker companies without durable business models face new pressures.
  • David explains why his team likes credit as an asset class, citing its scalability, correlation benefits, and downside protection attributes.
  • Karl describes how credit markets have improved relative to equity markets in 2023 and makes the case for a strategic portfolio allocation for institutional investors, particularly given the recent narrowness of equity markets. He notes how investment strategies with flexible mandates can serve long-term investors who seek to opportunistically allocate across the full spectrum of possibilities while optimizing their risk/reward outcomes.

We're quite constructive, but we do think it's going to be a very idiosyncratic market. It's one where you're going to have to pick your shots. You've got to think in multiple stages.

Karl Dasher

Important Disclosures

Please note that this document is a condensed summary of the full interview conducted by Canadian Leadership Congress.

The opinions and estimates expressed in this interview constitute the judgment of Polen Capital as of the date of the document, are not guaranteed, and are subject to change without notice or update, including any forward-looking estimates or statements which are based on certain expectations and assumptions. Although the information and any opinions or views given have been obtained from or based on sources believed to be reliable, no warranty or representation is made as to their correctness, completeness or accuracy. The views and strategies described may not be suitable for all clients.  References to asset classes and financial markets are for illustrative purposes only and are not intended to be, and should not be interpreted as, recommendations.  This document does not identify all the risks (direct or indirect) or other considerations which might be material when entering any financial transaction.  The target returns described in the interview are generally aspirational in nature, are not based on any specific criteria or assumptions, and are not a guarantee.  Actual performance results, which may not achieve this performance objective, will vary.

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