By Hunter Frey | September 2022

Key Takeaways

• Seek credit investments with uncorrelated returns
• Duration management (ideally shorter duration is essential)
• Opportunistic corporate/convertible bonds with undervalued relative pricing.
• Floating Rate (Bank Loans) hedge portfolios from interest rate risk without being a tactical shift
• Legacy NARMBS are high principal investments with a strong structural support to weather market uncertainty.
• Special Situation credit investment opportunities can deliver strongly uncorrelated returns through unique positionings.

Amid stagflation, the economic situation remains murky, though we see a clear path for monetary policy: raising rates. However, questions remain on the velocity of the Federal Reserve’s (Fed) quantitative tightening and the length needed for hawkish policy to tame inflation.