New Income Opportunities And Stress-Testing Our 2025 Playbook
2025-04-17 04:17:28 ET
Summary
- Tariffs have caused significant market stress, widening credit spreads and increasing volatility, but higher-quality fixed-income assets like TIPS and Munis have performed well.
- The drawdown has revealed attractive opportunities in high-yielding assets, especially in CEFs and BDCs, which are now trading at significant discounts.
- A countercyclical investment approach via a barbell strategy can help investors capitalize on market downturns by rotating from lower-risk to higher-yielding assets.
- Despite ongoing uncertainty, now is a favorable time to add to beaten-down, higher-yielding assets, particularly for those who reduced risk exposure over the past 18 months.
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