Credit where credit is due

Over the past 25 years, European credit has consistently outperformed traditional balanced portfolios in terms of returns and risk. Ermira Marika and Nicolas Musolino's analysis highlights the superior risk-adjusted returns of euro investment grade and high yield credit compared to German government bonds and European equities. They challenge misconceptions about credit, emphasizing its resilience and attractiveness as an asset class. The authors advocate for a strategic allocation to credit, suggesting that investors with longer investment horizons can benefit from its stability and potential for steady returns.