If it feels like we haven’t been here before, it’s because we haven’t. The team tackles the unique economic environment we’re faced with in 2022.

On Monday, January 17, several FS Investments’ employees, and their families volunteered their time at the 27th annual Greater Philadelphia King Day of Service at Girard College. The FS Foundation, the philanthropic arm of FS Investments, also provided financial support to the event.

As rising rates have wreaked havoc across markets this year, our chart focuses on the widening duration gap between IG and HY bonds.

As we head into 2022, the market in general appears quite strong, but there will likely continue to be significant dispersion, offering investors the opportunity to outperform.

The solid backdrop for credit sets the scene for compelling returns. It will be a credit-picker’s market, and we look to high yield bonds and senior secured loans as areas of continued opportunity.

Value dominates early 2022 as rates rise. Our chart looks at value’s relative outperformance and why flexibility may be key this year.