Hans Valer breathes a sigh of relief. «The past twelve months have been challenging,» he says, which might be an understatement. On one hand, interest rate movements and geopolitical uncertainties have made markets more demanding. On the other hand, there was a significant shift in the Swiss corporate banking business. Until 2023, the two major banks UBS and Credit Suisse played a central role. One of them is no longer active in the market, which has also affected Muzinich.

Muzinich is an institutional asset manager specializing in publicly traded and private corporate bonds and loans (corporate credit). Switzerland is considered one of its key markets. The collapse of Credit Suisse forced the company to take action.

Enhanced Collaboration With Other Institutions

«Our goal is actually to achieve steady growth in Switzerland as well. But last year, it was necessary to reorganize and set a new course,» says Valer. In other words, it was essential to deepen collaboration with other institutions.

Cantonal Banks As a Key Segment

In the future, cantonal banks will play an even more important role for Muzinich. «They are reliable partners with significant in-house capacities, making them an ideal partner for us,» says Valer. Over the past few months, Muzinich has utilized this time to intensify its contacts with cantonal banks.

More Choices and Flexibility

2024 looks promising for Muzinich. Valer is optimistic about the current year, particularly because he sees promising strategies in the corporate credit sector. Investment solutions that combine liquid and illiquid assets have emerged as a new trend.

These offer investors the potential for higher risk-adjusted returns, additional diversification of their portfolios, as well as more choices and flexibility. «This is especially interesting in a time like now, where inflation remains stubborn and credit markets face the risk of interest rates staying in a 'higher-for-longer' cycle,» he says.