Public Fixed Income

IG Credit: The Hidden Risks of “Safe” Bond Strategies

February 2020 – 30 min listen
Traditional investment grade bond strategies are meant to help their owners sleep at night. But hidden credit and interest rate risks make benchmark-hugging more hazardous than many realize. Counterintuitively, CLOs, ABS and EM debt may be part of the solution.

Episode Segments

3:15 – The factors driving IG credit markets over the last year
5:21 – How benchmark-hugging could prove treacherous in 2020
10:17 – The pros and cons of CLOs in an IG portfolio
15:36 – Capitalizing on the expansion of the ABS opportunity set
21:32 – Geographic diversification through EM corporate debt
24:29 – Potential pitfalls to avoid this year in credit markets

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