LONDON (14 July 2020) – Aon plc, a leading global professional services firm providing a broad range of risk, retirement and health solutions, has issued ‘High Quality Short Credit’, a new paper which examines the growing interest from maturing pension schemes in asset-backed securities and short-dated credit as a means of de-risking away from equities.
Alex den Braber, Liquid Credit Investment Specialist at Aon, said:
“Low risk credit was already an area of investment that Aon was recommending to pension schemes, but the current COVID-19 pandemic-driven volatility has brought it especially to the fore. As UK pension schemes de-risk and move closer to their long-term funding targets, high quality, low duration credit strategies are fulfilling an important role in their investment portfolios. They offer a reduced expected risk of default, lower volatility and cashflow matching characteristics.
“At Aon, we favour high quality, low duration credit strategies, including asset-backed strategies and short-dated credit. These actively managed strategies offer institutional investors an excellent investment opportunity to gain from current market dislocations. They also offer an attractive diversified credit proposition for investors looking to reappraise their current credit strategy.”
‘High Quality Short Credit’ is available here.
Aon plc (NYSE:AON) is a leading global professional services firm providing a broad range of risk, retirement and health solutions. Our 50,000 colleagues in 120 countries empower results for clients by using proprietary data and analytics to deliver insights that reduce volatility and improve performance.
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