Why higher credit yields don’t always mean higher risk

Jack Deegan discusses how the Polar Capital Financial Credit Fund is positioned as markets respond to higher inflation expectations, geopolitical tensions and the prospect of shifting monetary policy. He highlights the Fund’s focus on lower risk areas of the capital structure, alongside active management of credit and interest rate risk, which he believes have helped navigate recent volatility. He also explains why the team continues to favour European and UK financials, where more stringent regulation provides greater protection for credit investors.