Carry and yield have dominated the bond buying conversation over the past few years, but Pictet’s Andrés Sánchez Balcazar believes the tide is now turning and the opportunities in the wider bond world are improving significantly.
Speaking to Citywire Selector, Citywire+ ratings expert Balcazar, who is named in a number of the Swiss asset management firm’s funds, said many investors were looking to deploy capital in cash or liquid assets at one end while tapping into private markets for guaranteed profitability at the level of another.
“There was a lot of focus on carry, which meant people were probably not as keen on raising prices as they were before,” he said. “But they wanted good recurring income, which could be achieved through a combination of cash and private debt.