

The Insight: Conversations – Credit Picker’s Market with Wayne Dahl, Robert O’Leary, and Mark Jacobs
11 snips Oct 5, 2023
Wayne Dahl, Robert O’Leary, and Mark Jacobs discuss topics from Oaktree's Quarterly Letters, including navigating the interest rate environment, attractive sectors for credit investors, misconceptions about the real estate market, and more.
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Interest Rates Wild Ride 2023
- Interest rates experienced a wild ride in 2023, shifting from expected lows to higher levels unexpectedly.
- The market now expects interest rates to be higher for longer, impacting investment strategies significantly.
High Yield Bonds Outperform
- High yield bonds performed positively in 2023, beating treasuries despite rising interest rates.
- Credit spreads compressed, providing returns above just earning coupons in a challenging environment.
Smart Credit Selection Tips
- Avoid generic credit indexes and focus on credit selection to navigate a higher for longer rate environment.
- Emphasize investments with low duration or floating rate coupons to reduce rate risk and boost income.