Victory Capital Holdings, Inc. Class A Common Stock · NASDAQ:VCTR
Victory Capital Holdings, Inc. Class A Common Stock — USAA Investments Mid Year Outlook PRES
11 slides from Victory Capital Holdings, Inc. Class A Common Stock's investor presentation, Jun 30, 2021
Slide 1: Mid-Year Outlook – "Carry On" Trade Continues
Mid-Year Outlook – “Carry On” Trade Continues As of June 30, 2021 20210712-1717451
Slide 2: Speaker
Speaker Jim Jackson, CFA Victory Capital Senior Portfolio Manager USAA Investments, A Victory Capital Investment Franchise Jim Jackson, CFA, is the Head of Fixed Income Portfolio Management for the USAA® Investments franchise. USAA Investments was acquired by Victory Capital in July 2019 and is a Vi
Slide 3: Mid-Year Outlook 2021 – Key Takeaways
Mid-Year Outlook 2021 – Key Takeaways Credit spreads are at or near all-time lows Credit Base case is economic growth and corporate profits support Spreads spreads for 2nd half 2021. Income “Carry On” trade will continue Driving Excess returns to credit tend to persist after spread widening Returns
Slide 4: Spreads Approach All Time Low Levels
Spreads Approach All Time Low Levels Strong economic growth environment and improving corporate earnings are supportive of credit spreads, although historically spreads at these levels have led to mixed excess returns. Bloomberg Barclay Credit Index 600 OAS Period Low 500 Option Adjusted Spread (bps
Slide 5: Historical Excess Returns for Credit Markets in Similar Spread Environments are Mixed
Historical Excess Returns for Credit Markets in Similar Spread Environments are Mixed Excess returns for corporate bonds relative to similar duration Treasury securities in similar spread environments are clustered around zero, with negative returns primarily driven by market dislocations. 1YR Exces
Slide 6: Positive Returns Predominate Even with Low Spreads
Positive Returns Predominate Even with Low Spreads Total returns on a 1-year forward basis, even with corporate bond spreads at tight levels, have been positive in most historical cases. 1YR Return with Spreads <85 bps 10.00% 1YR Return has been 8.00% Positive 92% of the time when invested at spread
Slide 7: Historically Excess Returns Have Long Cycles
Historically Excess Returns Have Long Cycles Positive excess returns for credit averaged 643 days after spreads peak After credit spreads have peaked in previous credit cycles, excess returns to credit have persisted from spread tightening, incremental income generation and long economic expansions.
Slide 8: Credit Attractive in a Search for Yield
Credit Attractive in a Search for Yield Elevated credit yield advantage relative to history The credit yield advantage remains compelling from an investment perspective. We expect market conditions to remain supportive for credit in 2021, and that “carry” will continue to drive returns. 6.0x 18.0 16
Slide 9: Current Environment is Opportunity for Active Management
Current Environment is Opportunity for Active Management Security selection within credit market can drive prospective returns. Significant spread dislocation in March 2020 led to wider credit spreads across all bonds with a high degree of spread dispersion. Current credit spreads and dispersion are
Slide 10: Contact Us
Contact Us For more information, please visit vcm.com or call our sales desk at 800.991.8191. | 10 20210712-1717451
Slide 11: Important Information
Important Information Advisory services offered by Victory Capital Management Inc., an SEC-registered investment advisor. 15935 La Cantera Pkwy., San Antonio, TX 78256. All investing involves risk, including the potential loss of principal. Fixed income securities are subject to interest rate, infla
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