Investment Grade Quarterly Update – April 2025
TwentyFour Asset Management’s Chris Bowie reflects on a politically eventful first quarter, its impact on European and US markets, and what it could mean for investors going forward.
Key takeaways
Investment grade market performance
- Political events including a new US president and German government have shaped market dynamics.
- Spreads have reappeared for the first time in six months off the back of technology equity and earnings volatility in the US.
- Risk sentiment weakened due to concerns over US growth quality and a potentially cooling jobs market, widening credit spreads by 10–15 basis points (bp).
Market outlook
- The team has remained defensively positioned with lower spread duration compared to historical averages.
- A modest further widening in spreads may present a strong opportunity to reintroduce risk and extend spread duration.
- Fixed income continues to offer very attractive total credit yields.
About the author
About the author