Hi guys:
was just wondering if I can hear about your views on fixed income/credit after rates go up? Are we at a point in the credit cycle where the last 20 years of bond bull market is about to end and reverse? if so, would fixed income/credit investing become a declining industry? what are your thoughts on this?
Thanks!
| Best Public Markets Gig? ER, MM HF, SM HF, or LO AM? | 13 | 2d | ||
| +42 | How to start a family office (HF rainmaker) | 17 | 19h | |
| +34 | Law to Quant Pivot? | 10 | 1d | |
| +21 | How to destress at Pod HF? | 8 | 6s | |
| +19 | People who work at hedge funds, what made you interested initially? | 13 | 7h | |
| +19 | Hedge Fund WLB | 6 | 19h | |
| +19 | HF Final Round Interview | 4 | 4d | |
| +17 | Most appealing public credit seats out of RX? | 1 | 4d | |
| +16 | Which Funds focus on timing the broad market rather than L/S individual equities? | 10 | 9h | |
| +16 | good fundamentals, bad chart | 8 | 1d |
Career Resources
Get instant access to lessons taught by experienced private equity pros and bulge bracket investment bankers including financial statement modeling, DCF, M&A, LBO, Comps and Excel Modeling.
Hi,
I think when (or if?) rates go up, there will be much more focus on floating coupon part of fixed income - loans, structured credit etc. However, I would expect the bear market to be much shorter than bull market - rates increase would happen gradually but over years rather than tens of years. On the other hand, I'd say return oriented investors might actually appreciate higher yields and therefore the sector could get a bit more attention.
^Seconded. I'd think that rates going up would be good for "new" FI investment, as the higher rate environment starts showing the cracks in equities of companies that rode the low rate wave, money will shift out of equities into newly issued, higher yielding corporate debt.
Culpa est asperiores sequi officiis est nemo. Nihil fugiat quasi dolorem ratione dolorem illum assumenda molestiae. Est dolores accusamus quis dolores adipisci occaecati quod. Voluptatum consectetur ut aut. Qui asperiores sit temporibus sit quia vitae illo.
See All Comments - 100% Free
WSO depends on everyone being able to pitch in when they know something. Unlock with your email and get bonus: 6 financial modeling lessons free ($199 value)
or Unlock with your social account...