The Rules of Investing Chris Joye's big contrarian call
Sep 23, 2025
Christopher Joye, Chief Investment Officer at Coolabah Capital and a renowned contrarian thinker, shares his bold bullish outlook on the US economy, spurred by tariffs, tax cuts, and significant AI investment. He delves into the bond markets, highlighting signs of possible rate cuts and concerns about sovereign debt. Joye warns investors about risks in hybrid replacement strategies and suggests focusing on senior financial bonds. He also considers the dynamics of liquidity and the business cycle while sharing his favorite ski destinations!
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Prefer Major Bank Debt Over Illiquid Replacements
- Avoid illiquid hybrid replacement strategies that load portfolios with liquidity and default risk.
- Stay with major-bank issuers and move up the capital stack into senior or subordinated bonds instead.
Personal Losses From Illiquid Funds
- Christopher Joye recounts his advisor placing $400k into a litigation fund that was later gated for three years.
- He also shares that his mother lost $400k in a private credit fund blow-up, illustrating personal exposure to illiquid risk.
Hybrids Showed Liquidity In March 2020
- Joye notes hybrid markets were liquid in March 2020 when his team bought $300m of hybrids amid $1.22bn traded that month.
- He uses that to argue hybrids can be liquid relative to many alternative investments.