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Our views 27 April 2020

Is now the right time to invest in credit?

By Ewan McAlpine, Senior Client Portfolio Manager

5 min read

The real start of the ‘coronavirus crisis’ was in December 2019 when the Chinese authorities informed the World Health Organisation of pneumonia cases in Wuhan due to, at the time, “unknown causes”.

Financial markets paid relatively little attention to the breakout until shortly before it was recognised as a pandemic on 11 March; even at the end of February, global markets had moved little in response or anticipation of what would develop from a public health crisis to an economic and financial one.

The extended Lunar Year shutdown in China had caused global growth expectations to be cut as investors feared an outbreak more akin to the SARS epidemic, with severe implications for supply chains given Wuhan’s importance as a global manufacturing hub. February was a transitional month in which the risks seemed to be getting greater, but were still thought to be manageable.

Read Is now the right time to invest in credit? full article