FICC Focus Credit Crunch: Vontobel’s Jackson Talks Credit Relative Value
Aug 11, 2025
Andrew Jackson, Head of Investments at Vontobel, shares his extensive experience in fixed income and credit markets. He emphasizes the importance of active management and alpha vs. beta strategies, particularly in emerging markets. Jackson discusses the unpredictability of the bond market and the challenges posed by macroeconomic shifts. He highlights the current robust state of credit fundamentals in the U.S. and Europe, while also addressing potential risks in private credit. The conversation reveals insights on navigating liquidity and strategic trading in volatile environments.
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Joining An Active-Only Firm
- Andrew Jackson joined Vontobel because the firm is active-only and emphasizes fixed income expertise.
- He values a team where portfolio managers and leadership are deeply involved in investment decisions.
Hunker Down On Currency Risk
- Reduce currency exposure and lower overall risk tolerance in local‑currency emerging‑market strategies.
- Focus more on credit underwriting and take less FX and rates risk right now.
Rethinking Sovereign Debt Dynamics
- U.S. sovereign debt sustainability is deteriorating while many emerging market sovereigns have stronger metrics.
- That shift matters for long-term relative value between EM and DM allocations.