Dec 15, 2020
This is “ReSolve’s Riffs” – live on YouTube every Friday afternoon to debate the most relevant investment topics of the day.
Most investors have 30 - 50% or more allocated to bonds. With U.S. equities at nosebleed valuations, investors need to wring the most efficient returns out of every sleeve of their portfolio.
Brian is the Associate Director, Fixed-Income Strategies, Manager Research at Morningstar so we focused on the fixed income sleeve of portfolios. Specifically, we wanted to know how investors can generate the returns they need in a near-zirp world. Brian offered great color on the flawed construction of credit indices, and why this opens the door for outperformance by active credit managers.
We discussed the most durable credit strategies and what looks especially attractive now. Brian also filled us in on the differences between different types of structured credit, such as CLOs, CDOs and CMOs, and how to approach the sectors at the moment.
Run don't walk to learn what to do with all those bond funds in your portfolios!