BGX - Late Cycle Challenges
Since it's January, we are blessed with the annual outlooks from market prognosticators. We read the one's we respect and even some of the one's we don't. The consensus is that growth could accelerate a bit, inflation is likely to firm, and interest rates rise. For our approach, 2017 was a great year. Every position in the Core Portfolio provided a net positive contribution. The results were even more remarkable when you factor in the return per unit of risk taken.
The approach of investing in debt instruments levered up in more favorable structures (closed-end