The Contrarian Investor Podcast Opportunities in High Yield, Private Credit and More: AJ Giannone, Allio Capital
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Mar 31, 2025 AJ Giannone, Chief Investment Officer at Allio Capital, delves into high yield and private credit opportunities, emphasizing their viability even in uncertain markets. He highlights the potential of actively managed ETFs like HYG and HYBB, while downplaying recession worries. Giannone discusses the recent accessibility of private credit to retail investors through ETFs and its diversification benefits. Additionally, he shares insights on macro signals influencing market strategies and the promising outlook for European equities.
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Active Management in High Yield
- AJ Giannone likes high-yield credit and ETFs, especially actively managed ones.
- He believes active management can provide value by mitigating downside risk.
High-Yield ETF Recommendation
- Consider HYG, the iShares iBoxx $ High Yield Corporate Bond ETF, for high-yield exposure.
- Look at the spread over comparable treasuries and the SEC yield.
Smart Beta ETF Tip
- Explore smart beta ETFs like HYBB, the iShares BB Rated Corporate Bond ETF.
- These systematically screen for quality and aim to minimize default risk.