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
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.
- 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.