The best way to play 2017 was to be more focused on idiosyncratic security bets, says WFAM Credit Europe’s head of investment grade, revealing the one call she is glad she missed.
Speaking to Citywire Selector, Citywire AA-rated Henrietta Pacquement reveals the bond issuance that failed to ‘pass the smell test’ and proved to be one of the firm’s wisest calls for the calendar year.
Pacquement also talks through how short duration strategies will evolve in a world of rising rates, which includes more tactical changes.
‘We still like credit and are slightly overweight but we have been making changes and investing a bit in EMs and picking up some corporate hybrids and hybrids with high back-ends, such as the AT1s.
‘We have a bit of cash in the portfolios as well and we have done that to take down a bit of risk in the portfolio,’ she adds.
Watch the video above to find out which bond bet Pacquement chose to avoid and how her three funds are shaping up for the year ahead.