Navigating Geopolitical Risks in Investment Strategies

Against a backdrop of stickier-than-expected inflation, higher-for-longer rates, and persistent geopolitical risks, what is the outlook for high yield bonds and senior secured loans? Global High Yield Portfolio Manager, Brian Pacheco, weighs in.

Episode Segments:

(03:29) – How the macro backdrop has changed for high yield this year

(06:28) – Why the Barings team is bullish today on loans

(08:37) – Contrasting the steady return profile of loans with higher duration assets

(10:14) – Where loans sit from a valuation perspective today

(11:39) – How higher rates may impact the default picture

(14:20) – Liability Management Exercises (LMEs) – why they matter

(17:02) – Why high yield bonds may offer more value than commonly perceived

(25:33) – Risks to watch: Accelerating inflation, term premiums, & geopolitics

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