Credit Rout Spurs Paragon, Aberdeen to Chase High-Grade Debt

The Iran war-induced credit market selloff is prompting some money managers to buy oversold investment-grade bonds, in a bet that solid fundamentals will help them withstand the conflict and economic uncertainties.

Paragon Capital Management prefers high-grade debt from European financial institutions, citing cheaper valuations versus global peers. In Asia, Aberdeen Investments favors notes in industries from utilities to telecommunications, where there is stronger local revenue contribution and greater earnings visibility.