Lead-Lag Live Fixed & Equity Income Strategies for 2026 | Rates, Rotation & Returns
Jan 12, 2026
In this engaging discussion, Jay Hatfield, CEO of Infrastructure Capital, shares his expertise in income securities and market strategies. He predicts significant changes in fixed income yields due to anticipated Fed rate cuts, advocating for high-yield bonds and preferreds over traditional investment-grade options. Hatfield also delves into equity opportunities beyond tech, emphasizing small-cap rotations and valuation discipline. He provides insights on navigating the evolving economic landscape and positioning portfolios for optimal returns in 2026.
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Private Equity Firms Offer Preferred Opportunities
- Private equity managers and alternative asset firms look relatively healthy and present opportunities.
- Hatfield highlights mandatory convertibles from Apollo and KKR as attractive preferred positions.
Real-Time Data Suggests Imminent Fed Cuts
- Hatfield expects three Fed cuts as inflation is already contained and shelter prints are falling.
- He argues real-time data shows inflation should reach ~2% by year-end, enabling cuts.
Favor Higher-Yield Credit On Fed Cuts
- Move into higher-yield fixed income if the equity market stays strong during Fed cuts.
- Jay Hatfield specifically recommends high-yield bonds and preferreds over investment grade in that scenario.