Columbia Threadneedle: No Autumn chills for Global Investment Grade Corporate fundamentals

IG valuations remain tight, and the market remains focused on whether this is justified by fundamentals. Our bottom-up company analysis shows profitability remains strong and leverage modest.

24.10.2024 | 06:10 Uhr

Key Takeaways

  • Investment Grade valuations remain tight, and the market remains focused on whether this is justified by fundamentals. Our bottom-up company analysis shows profitability remains strong and leverage modest
  • We examine emerging trends as we move into 2025 and highlight sectors which will be most impacted
  • Geographically, we believe issuers in the US indices are in a better position than their European-based counterparts going forward

Investment grade (IG) indices remain close to recent tights. Similarly, corporate fundamentals are in an extremely strong position. Our credit work looks to identify where there is a mismatch between the fundamental expectations and valuations of issuers, on a name-by-name basis. We also aggregate the single name expectations each quarter to give a view of the market as a whole. This is based on the detailed, bottom-up forecasting our analysts complete on each of the names they cover and gives a perspective on the health of the largest corporates in the US and Europe, highlighting both winners and losers.

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