From Treasury to Credit: Navigating Market Shifts

This chapter explores an individual's transition from the U.S. Treasury to co-CIO of a credit investment firm, detailing how experiences during the savings and loan crisis influenced their perspective on fixed income markets. It discusses the impact of the zero-interest rate environment on investment strategies, particularly for pension funds, and the current shift towards credit due to higher yields. Additionally, the chapter highlights the contrasting roles of credit and equity analysts, emphasizing the importance of cash flow and balance sheet analysis in this evolving financial landscape.