Why credit investors are hedging – even as bonds rally

29/07/2025 3 min Episodio 94
Why credit investors are hedging – even as bonds rally

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Episode Synopsis

Investment-grade bonds are having a strong year, but investors aren’t getting complacent.Neil Sun, Portfolio Manager on the BlueBay U.S. Fixed Income team, discusses how portfolio managers are hedging their credit exposure despite a compelling market environment.Yields remain attractive, inflows are strong, and performance is solid—even with tight credit spreads.Managers are staying cautious, holding high-conviction positions while using hedging strategies like credit default swaps and options to protect against downside risks.In today’s market, managing risk is just as important as finding yield. Strategic hedging ensures portfolios stay resilient, no matter what comes next.Staying invested doesn’t mean flying blind. Active risk management is key in tighter markets.