We continue to find opportunities in CLOs and ABS, but look for ways to limit risk as the credit cycle nears its end.
Concerns about inflation and a steeper path for Fed rate hikes buoyed investor demand for floating-rate assets, but defaults are ticking higher.
We focus on originator and manager experience as new entrants flood the CRE CLO market.
With falling sales volume and normalized maturities, the supply of mortgage loan opportunities will be significantly less this year.
Demand for high-yield corporate bonds waned in the first quarter as Treasurys sold off, but signs of a turnaround are visible.
Changes in monetary policy, rising corporate leverage, and a deteriorating technical landscape are taking a toll.
Income-seeking retail investors are driving the market for municipal bonds, but a disciplined approach can still uncover opportunities.
Improving fundamentals and limited supply have insulated the sector from broader market volatility.
Increased volatility could lead to wider credit spreads and a migration to higher-quality fixed-income assets.
Benign conditions support near term value in credit, but default rates will rise as the Fed tightens further and corporate debt levels continue to grow.
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