Multi Asset Credit – A Dynamic Approach to Credit Investing

Our actively-managed multi-asset credit strategies have the flexibility to move in and out of sectors, geographies and sub-asset classes at different stages of the macroeconomic cycle. They aim to take advantage of opportunities and provide protection against downside risk. In rapidly evolving investment conditions, such strategies may offer a viable option for investors unsure of where to allocate in credit.
Return of the MAC: A dynamic approach to credit investing

INTRODUCING THE DYNAMIC CREDIT INCOME STRATEGY

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  • Focuses on maintaining a high level of portfolio yield throughout the cycle.
  • Has the flexibility to search and allocate to opportunities presented by dislocated markets.
  • 40-80% allocation to high yield over market cycle (typical allocation c. 70%).
  • Seeks to boost performance during a market recovery phase by increasing high yield allocation.
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  • Focuses on short-dated, higher-quality high yield to capture upside potential while providing downside protection in volatile markets.
  • Can increase allocation to investment-grade bonds during periods of macroeconomic uncertainty.
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  • Seeks to limit drawdowns via hedging; use of credit indices to buy protection, out-of-the-money puts on correlated indices.
  • Tailors hedging to current spread/volatility environment and likely direction of spreads.

Why Muzinich?

Highly Rated*

Highly rated managers of emerging market, high yield and investment grade credit portfolios.

Research-Focused

Deep focus on intense, bottom-up credit analysis across investment grade and high yield universe.

Experienced

A long-term track record managing global credit using an investment process framed by top-down credit market views and bottom-up security selection.

Credit Specialists

A depth, breadth and history of credit expertise that is difficult to replicate.

Risk: Risk management involves an effort to monitor and manage risk but does not imply low or no risk.

*Citywire AA rated Mike McEachern, Citywire + rated Warren Hyland, Citywire A rated Thomas Samson.

There can be no guarantee that the investment strategy will be successful, and the value of the investment may go down. Muzinich views and opinions, for illustrative purposes only. Not to be construed as investment advice.

MAC Strategies at Muzinich – Investment Process

We believe a thoughtful and disciplined investment process combines top down credit themes with a deep bench of global credit research to help promote a repeatable and consistent outcome.

MAC Strategies at Muzinich – Investment Process

Investment Team

Mike McEachern is the lead manager for our MAC strategies, which represent US$3.5bn our AUM.* Our investment philosophy and process has been consistent since the launch of our first MAC strategy in 2013.

Portfolio Positioning/Risk

Michael McEachern

Michael McEachern

Lead Portfolio Manager

Warren Hyland

Warren Hyland

Co - Portfolio Manager

Individual Credit Selection

Anthony De Meo

Anthony De Meo

(US Investment Grade)

Kevin Zeits

Kevin Zeits

(US High Yield)

Thomas Samson

Thomas Samson

(European Credit)

Marcos Räisänen

Marcos Räisänen

(Emerging Markets)

Supported by our Broader Markets Investment Team

26
Research Analysts (17y avg exp)
7
Credit Traders (21y avg exp)
9
Risk Professionals (19y avg exp)

*as of April 30, 2024. (y) - years of experience. Years of experience gained includes that outside of Muzinich.

How to Access Muzinich’s Dynamic Credit Income Strategy

Our Dynamic Credit Income strategy seeks to maintain a high level of portfolio yield throughout the cycle, with the flexibility to search and allocate to opportunities presented by dislocated markets.

The strategy looks to boost performance during a market recovery phase by increasing the high-yield allocation, but with the flexibility to increase its allocation to investment-grade bonds during periods of macroeconomic uncertainty.

Dynamic Credit Income

Seeks to capture the outperformance in credit markets while managing downside risks.

  • Focus on maintaining high level of portfolio yield
  • Combines macro analysis with bottom-up credit selection.
  • Expected volatility 6-8% annualized

Risk:  This material is not intended to be relied upon as a forecast, research, or investment advice, and is not a recommendation, offer or solicitation to buy or sell any securities or to adopt any investment strategy. The opinions expressed by Muzinich & Co and may change without notice.

Insights

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Podcast  |  May 10, 2024

Podcast - Adapt and thrive: A dynamic approach to credit investing

In the latest episode of the Muzinich podcast, we explore the potential benefits of a more dynamic approach to credit investing with Mike McEachern, Co-Head of Public Markets at Muzinich and the lead portfolio manager on the Dynamic Credit Income strategy.

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Insight  |  May 8, 2024

Return of the MAC: A dynamic approach to credit investing

With fears of an economic hard landing abating and rates expected to stay higher for longer, our co-head of public markets and portfolio manager Mike McEachern discusses how a greater allocation to high yield, underpinned by strong risk management, can potentially boost the return appeal of a multi-asset credit strategy.

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Snapshot  |  April 11, 2025

Muzinich Asset Allocation Group Monthly Update - April 2025

Please click to watch our latest Asset Allocation Group video update for the month of April 2025.

If you would like to discuss any of our Multi Asset Credit strategies in further detail, please contact Hugo Wheeler, Managing Director, Country Manager - UK & Ireland

Hugo Wheeler

Hugo Wheeler

Managing Director, Country Manager - UK & Ireland

hwheeler@muzinich.com
Office: 0203 928 5346
Mobile: 07889 050954