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Animal Spirits Podcast

Talk Your Book: Strategic Income

Nov 27, 2023
Nuveen Portfolio Manager Nick Travaglino joins Michael Batnick and Ben Carlson to discuss the bond market, the Fed, fixed income yields, and interest rates. They explore misconceptions and opportunities in the bond market, strategies for mitigating risk and maximizing returns, and characteristics of a bad market environment for their strategic income strategy.
32:29

Episode guests

Podcast summary created with Snipd AI

Quick takeaways

  • Cash moving out of fixed income into cash is impacting liquidity in the bond market, potentially leading to a bond rally if interest rates fall and investors seek safety in bonds.
  • Bond investing requires macro analysis and assessing risk-reward setups, along with adapting to market opportunities for optimal investment outcomes.

Deep dives

The Impact of Cash on the Bond Market

The podcast discusses the potential impact of cash on the bond market. With many investors moving fixed income into cash as an alternative, liquidity in the bond market has decreased. The hosts debate whether a bond rally could occur if interest rates fall, leading to money coming out of cash and seeking safety in bonds. They express differing views on whether this scenario is likely to happen.

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