Where to Find Income Within Fixed Income
After a year of significant rate hikes in 2022, there are many investment strategies offering higher yields within the fixed income universe. Some advisors are returning to the corporate bond market, where a diversified portfolio can offset the credit risks and generate meaningful income. Others are turning to collateralized loan obligations (CLOs), which offer a floating rate coupon that adjusts as rate rise. In the next webcast, VanEck and VettaFi will review the market conditions and explain how various investment strategies can be a strong fit in a client portfolio.
Topics of discussion will include:
- The benefits of the CLO structure, particularly their ability to mitigate risk and other built in protections.
- The state of the investment grade and high yield bond markets and where opportunities can be found.
- Why not all high-yield strategies are created equally and how fallen angels stand out.
- How financial advisors can incorporate targeted fixed income ETFs into a diversified income portfolio.
Accepted for one hour of CFP/IWI/The American College Board CE credit for live and on-demand attendees
CFA Institute members are encouraged to self-document their continuing professional development activities in their online CE tracker.
Fran RodilossoHead of Fixed Income ETF Portfolio Management
Bill SokolDirector of ETF Product Management
Tom LydonVice Chairman
For Financial Professionals Only. Not for Distribution to the Public.
Please note that VanEck may offer investment products that invest in the asset class(es) or industries discussed in this webinar.
The views and opinions expressed are those of the speaker and are current as of the video’s posting date, and are not necessarily those of VanEck or its employees. Video commentaries are general in nature and should not be construed as investment advice. References to specific securities and their issuers or sectors are for illustrative purposes only. This is not an offer to buy or sell, or a recommendation to buy or sell any of the securities/financial instruments mentioned herein. The information presented does not involve the rendering of personalized investment, financial, legal, or tax advice. Certain statements contained herein may constitute projections, forecasts and other forward looking statements, which do not reflect actual results, are valid as of the date of this communication and subject to change without notice. Information provided by third party sources are believed to be reliable and have not been independently verified for accuracy or completeness and cannot be guaranteed. VanEck does not guarantee the accuracy of third party data.
An investment in a Collateralized Loan Obligation (CLO) may be subject to risks which include, among others, debt securities, LIBOR Replacement, foreign currency, foreign securities, investment focus, newly-issued securities, extended settlement, management, derivatives, cash transactions, market, operational, trading issues, and non-diversified risks. CLOs may also be subject to liquidity, interest rate, floating rate obligations, credit, call, extension, high yield securities, income, valuation, privately-issued securities, covenant lite loans, default of the underlying asset and CLO manager risks, all of which may adversely affect the value of the investment.
There are inherent risks with fixed income investing. These risks may include interest rate, call, credit, market, inflation, government policy, liquidity, or junk bond. When interest rates rise, bond prices fall. This risk is heightened with investments in longer duration fixed-income securities and during periods when prevailing interest rates are low or negative.
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All investing is subject to risk, including the possible loss of the money you invest. As with any investment strategy, there is no guarantee that investment objectives will be met and investors may lose money. Diversification does not ensure a profit or protect against a loss in a declining market. Past performance is no guarantee of future results.
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