Australia vs USA: Where are the best income opportunities?
When looking at Australian and US investment-grade credit, they both offer similar risk premia, but when drilling down into each market, investors will discover stark differences.
According to Mihkel Kase, Fixed Income Portfolio Manager at Schroders Australia, the Australian investment-grade credit market has grown at a significantly slower pace vis a vis the US, is high quality and relatively under-levered. In contrast, the US market has doubled in size since 2009 and comprises a lot of longer-tenor, higher-risk paper.
Watch now to learn about Schroders' views on where opportunities lie in the Australian versus United States fixed income markets, and the need to protect capital at this point in the cycle.
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