SAT - Is It Still Hard To Lose Money In Income? A 6-Month Update

2023-04-25 03:59:08 ET

Summary

• About six months ago, we highlighted that the margin of safety across a broad array of income assets looked very attractive in historic terms.
• Since then, the income sector has performed well, prompting us to update the analysis.
• We find the current environment of lower yields, smaller income impulse from higher short-term rates for floating-rate securities, and stubbornly tight credit spreads less appealing.
• This less favorable environment means we are lightening up on exposure across a number of risk factors. We highlight securities that make sense to us at the moment.

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