Role of Australian multi-sector credit in portfolios to combat volatility in equity markets
INTERVIEWSERIES
Phil Strano, Head of Australian Credit Research, Yarra Capital Management
July 2025
With volatility in equity markets, investors are rethinking their portfolio positioning. In this exclusive interview, Phil discusses the role Australian multi-sector credit can play in achieving outperformance, the key dynamics driving tailwinds in the asset class and why investors should consider it as a great diversifier to Australian private credit, which has experienced rapid growth in recent years.
Watch the full interview which covers:
0:23 - How are interest rates and the recent tariff shocks impacting the relative value of Australian credit compared to offshore markets?
1:34 - Given the exponential growth in Australian private credit, what are the key risks investors need to consider?
3:37 - With investment-grade (IG) credit yields now offering returns comparable to long-term equity returns, how should investors think about balancing credit and equity allocations in the current environment?
4:45 - Why are multi-sector credit strategies considered optimal for achieving higher risk-adjusted returns, and what advantages do Australian credit markets specifically offer?
5:33 - As global equity valuations remain elevated and government bond curves steepen, what role does Australian investment-grade credit play in building a resilient portfolio?
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Phil Strano, Head of Australian Credit Research, Yarra Capital Management
Phil is the Head of Australian Credit Research at Yarra Capital Management. With an extensive career in asset management and institutional banking, Phil is a credit specialist with a deep understanding of the fixed income landscape. He is Portfolio Manager of the Yarra Higher Income Strategy and Deputy Portfolio Manager for Yarra’s RMBS and LBO strategies.
In more than 10 years managing portfolios and 20 years analysing financial markets/securities, Phil has amassed extensive experience in all major credit segments. These include listed/unlisted, rated/unrated, investment and sub-investment grade, bonds/loans and derivative instruments.
Prior to joining Yarra Capital Management in May 2017, Phil spent eight years with Victorian Funds Management Corporation (VFMC) in senior roles managing credit portfolios. He previously spent approximately four years with Challenger as a Senior Analyst and a Portfolio Manager, following more than 10 years with National Australia Bank where he worked first as an Economist and Analyst before moving into the institutional banking team to cover credit.
Phil holds a Bachelor of Economics (Honours) from Latrobe University, a Graduate Diploma Applied Finance and Investment (FINSIA) and a Master of Business Administration from the Australian Institute of Management.
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