AI-powered
podcast player
Listen to all your favourite podcasts with AI-powered features
Forward Guidance
Duration Remains Unattractive, Says Veteran High Yield Bond Investor
Oct 26, 2023
01:12:59
Snipd AI
Craig Manchuck, a veteran high yield bond investor, joins the podcast to discuss the end of the zero interest rate era. They explore the bond market sell-off, opportunities in the bond market, and the rise of private credit. They also talk about the impact of CLOs and passive investing on bonds, the pain from higher interest rates, and the decline of the heyday of private equity.
Read more
AI Summary
Highlights
AI Chapters
Episode notes
Podcast summary created with Snipd AI
Quick takeaways
- The bond market sell-off in recent years can be attributed to the end of the zero interest rate era and the Federal Reserve's tightening policies, leading to a potential recession.
- When investing in high yield bonds, conducting a bottoms-up analysis and focusing on credit quality are crucial for reducing downside risk and generating fair yield.
Deep dives
The Impact of Rising Interest Rates on Bonds
The podcast discusses the impact of rising interest rates on the bond market. The speaker mentions that the long duration part of the market has been experiencing significant losses. He emphasizes that the magnitude of the drawdown was not entirely unexpected, given the extended period of low interest rates experienced in recent years. The speaker also explains that the Federal Reserve's intentions to hike rates and combat inflation have contributed to the current market conditions. He mentions that his investment approach has focused on avoiding the extension of duration until the Fed signals a turn towards lowering rates. Overall, the podcast highlights the importance of being cautious and mindful of interest rate risk in bond investing.
Get the Snipd
podcast app
Unlock the knowledge in podcasts with the podcast player of the future.
AI-powered
Discover
highlights
Listen to the best highlights from the podcasts you love and dive into the full episode
Save any
moment
Hear something you like? Tap your headphones to save it with AI-generated key takeaways
Share
& Export
Send highlights to Twitter, WhatsApp or export them to Notion, Readwise & more
AI-powered
podcast player
Listen to all your favourite podcasts with AI-powered features
Discover
highlights
Listen to the best highlights from the podcasts you love and dive into the full episode