By Matthew Sheridan
TRANSCRIPT:
If clients have income needs, then it makes most sense today to look at a balanced approach.
A balanced approach to income generation in today's market offers about 70 percent of the yield of a US high-yield-only portfolio. That's a pretty attractive distribution that we can build that protects much better against potential drawdowns due to credit-sensitive investments.
We're 10 years into the cycle. The yield curve's inverted. Valuations aren't very provocative in US high yield. So, if we can build a portfolio that distributes 70 percent of that income, and