Income Investing In A New Rate Cycle: Seek High Quality, Attractive Value

Feb. 04, 2025 11:30 AM ETCLOI, MIG, MBBB
VanEck
4.6K Followers
(11min)

Summary

  • We see a few reasons why longer-term yields can continue to rise, including higher debt and deficit spending in the US and other developed markets, inflationary policy, and a host of geopolitical risks on the horizon.
  • Although we don't know where rates and yields are going to end the year, we do anticipate further volatility this year. That does not favor, in our opinion, taking long duration exposure.
  • CLOs are the best way to get this exposure right now.

Time and money - Bundles on clock

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Transcript

We've entered 2025 in the middle of a Fed rate cutting cycle. This is the first time we've seen this since 2019 and COVID and before that the GFC, but this time is a little bit different in

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