Episode 21: Fixed Income: Bursting More with Possibility or Risk?

Tony Roth |
Wilmington WealthWise with Tony Roth

October 21, 2020—A demand for income and a reduction in supply of higher-quality instruments have led investors to look beyond garden-variety government and investment-grade corporate for some yield love. Tony welcomes Jeff Katz, Managing Director, TCW/Metwest, to explore what fixed income bubbles have been or are in the process of being created as a result of monetary policy—and whether any of these bubbles are at risk of popping.

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Fallen Angel Risk Shifts Back into Focus

Evan Kurinsky |
Wilmington Wire

April 2, 2020—In our 2019 Capital Markets Forecast we highlighted myriad risks posed by the increasing amount and deteriorating quality of BBB-rated debt, which sits in the lowest tier of the investment-grade corporate bond market and just one notch above high yield. A decade of low interest rates, thanks to an accommodative Federal Reserve, incentivized companies to increase their level of borrowing, helping the BBB universe grow by more than 300% since 2009[1].

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