ARCC - Opportunities In This Income Market Melt-Up

2024-03-29 04:52:31 ET

Summary

• The broader income market has been in melt-up mode over the past year.
• Credit fundamentals are strong, but investors should be cautious and adjust their portfolios to avoid chasing yield and overextending on risk.
• Three types of opportunities to pursue in the current market are relative value, margin of safety, and dry powder holdings.
• We highlight recent buys across our Income Portfolios.

The broader income market has been in melt-up mode over the past year, and most recently, after the Fed refused to tighten the screws in light of stubbornly high inflation readings. Although this development has boosted returns, it has resulted in a less favorable investment environment as the compensation for bearing risk has been reduced to historically unattractive levels....

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