HALISTER1: Burgeoning Global Debt Pile Poses Biggest Concern for Robeco

Burgeoning Global Debt Pile Poses Biggest Concern for Robeco

(Bloomberg) -- Companies increasing their leverage and debt to levels higher than before the 2007 global financial crisis represent some of the biggest concerns for Robeco fixed-income managers, according to Maurice Meijers, CEO of Robeco Singapore.
  • Leverage has increased “quite considerably” in U.S. investment- grade credit, Meijers says in a press briefing in Sydney
  • Deleveraging that occurred post-financial crisis has now largely been reversed
  • Robeco prefers hard-currency debt and is staying clear of Chinese onshore bonds
  • There is “hardly a risk premium” in China credit markets and even though Robeco can access the onshore China debt market through bond connect, it is choosing not to do so right now
  • Currently favors corporate bonds with five- to seven-year maturities
To contact the reporter on this story: Ruth Liew in Sydney at rliew6@bloomberg.net To contact the editors responsible for this story: Andrew Monahan at amonahan@bloomberg.net Ken McCallum

Alert: HALISTER1
Source: BFW (Bloomberg First Word)

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Maurice Meijers (Robeco Groep NV)

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