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Our views 18 December 2023

Sterling credit: it’s all about the yield - Outlook 2024

5 min read

Sometimes, investing can be quite simple when it is stripped back to basics. When we look at the outlook for the next 12 months, we can see the prospects for issuance, the strength of corporate balance sheets and the potential for central bank action, but in my view, the starting point for next year is a very attractive ‘all-in’ yield.

It is very easy to focus more on credit spreads – after all, this is an essential premium we want to receive for the credit risk we take – but while these have not really moved a great deal over the past few years, the underlying gilt reference yield has increased dramatically.

Read in full: Sterling credit: it's all about the yields

The views expressed are those of the author at the date of publication unless otherwise indicated, which are subject to change, and is not investment advice.