BKLN - JBBB: Balancing Risk Vs. Reward
2024-06-20 00:41:13 ET
Summary
- It is prudent to consider risk management in high-yield investments during a potential market correction.
- JBBB offers lower risk CLO investment with 7.8% yield, suitable for a cash-like alternative.
- CLOs offer high yield with low risk due to structural protections, JBBB provides one attractive risk-reward alternative.
While the stock market is making new highs and those of us who are recently retired or are soon to retire are enjoying a healthy income stream from high yield investments such as those described in my recent Income Compounder portfolio update , it may be prudent to consider risk management. If the market sentiment shifts this summer as some are predicting and we experience a correction of 5% or more, it may be wise to raise some cash or at least hold a portion of your investment portfolio in relatively “safe” lower yielding securities....
JBBB: Balancing Risk Vs. Reward