Beyond Stocks: The Allure and Strategy of Credit Investments

Beyond Stocks: The Allure and Strategy of Credit Investments

Why investing in non-investment grade bonds, leveraged loans, and preferred stocks is potentially more compelling than investing in common stocks at present.

Topics covered include:

  • Why Howard Marks told institutional clients to sell stocks and buy high-yield bonds instead
  • The contractual agreements comprising bonds, leveraged loans, and preferred stock give them an advantage relative to common stocks
  • How preferred equity exhibits attributes of both bonds and common stocks
  • What is the expected return and risks for high-yield bonds, leveraged loans, and preferred stock
  • How do we invest in these three asset types


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Show Notes

Sea Change - Memo by Howard Marks

Further Thoughts on Sea Change - Memo by Howard Marks


Investments Mentioned

SPDR Bloomberg High Yield Bond ETF (JNK)

iShares iBoxx High Yield Corporate Bond ETF (HYG)

Invesco Senior Loan ETF (BKLN)

iShares Preferred Stock ETF (PFF)

Virtus Seix Senior Loan ETF (SEIX)

DoubleLine Flexible Income Fund (DFLEX)

BlackRock Debt Strategies Fund (DSU)

Barings Corporate Investors Fund (MCI)


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