Investors began this year with the widespread assumption that banks would cut rates, but it now appears that rates could remain high for an extended period. What are the implications for LGPS investors who have increased their exposure to bonds and private credit?
Room151’s LGPS editor, Mona Dohle, spoke with Rob Treich, head of public markets at London CIV, to discuss the outlook for bonds. Treich warns that with rates staying higher, defaults could begin to increase.
He predicts that the debt settlements at Thames Water, to which many institutional investors are exposed, could become a crucial litmus test in an environment where debt resettlements are becoming increasingly contentious.
The full conversation can be accessed here.
