One asset class that passed the recent stress test

2018 was tough for most asset classes with the blowtorch being applied in the final quarter of the year. While markets have rebounded in 2019 the volatility provided a good stress test for portfolios. One asset class that proved to be resilient was high-yield credit. Vivek Bommi  from Neuberger Berman says this is also consistent with how the asset class performed during the GFC.

If you were invested in high-yield at the beginning of 2008 by the end of 2009 you were up almost 20%. There’s almost no other asset classes in the world that match that.

This is one of four characteristics that Bommi believes investors don’t fully appreciate about this global asset class. Watch this short video for the full story.

Neuberger Berman’s Global Corporate Income Trust (ASX:NBI) was listed on the ASX in September 2018 and provides investors with exposure to the high yield bonds of large and liquid global companies.

For more information about NBI and how this investment solution can provide stable and consistent income, as well as diversification, please visit www.nb.com/nbi

Disclaimer

Equity Trustees Limited (“Equity Trustees”) (ABN 46 004 031 298, AFSL 240975), is the Responsible Entity for the NB Global Corporate Income Trust (“NBI”). Equity Trustees is a subsidiary of EQT Holdings Limited (ABN 22 607 797 615), a publicly listed company on the Australian Securities Exchange (ASX: EQT).

This video has been prepared by Neuberger Berman Australia Ltd (ACN 146 033 801) (“NB Australia”) to provide you with general information only. In preparing this publication, we did not take into account the investment objectives, financial situation or particular needs of any particular person. It is not intended to take the place of professional advice and you should not take action on specific issues in reliance on this publication. Neither NB Australia, Equity Trustees nor any of its related parties, their employees or directors, provide any warranty of accuracy or reliability in relation to such information or accepts any liability to any person who relies on it. Past performance should not be taken as an indicator of future performance. You should obtain a copy of NBI’s Product Disclosure Statement before making a decision about whether to invest in this product. The information contained in this publication is taken from publicly available sources that is subject to change without notice. EQT and NB Australia make no representation as to the reliability or accuracy of the publicly available information.