How to pick crisis-proof credits

The credit bull run of 2009 is a footnote in history. But discerning fund managers are finding there is still value to be had in credit; the challenge is picking the right names.

Picking the winners: where Europe's portfolio managers are putting their money

With the escalating sovereign fiscal crisis starting to hit the broader financial markets in recent months, the task of outperformance – or generating alpha – is becoming an increasingly tough proposition.

This is in stark contrast to 2009 when the rising tide lifted all boats and, as asset prices recovered strongly after the financial crisis, it would have been more difficult than not to select a portfolio that didn’t produce double-digit returns.

As one European credit manager puts it: