Posted 3/29/2024, 8:52:31 AM
Investment Manager Cautious on Overvalued Markets, Pursues Relative Value and Raises Cash
- Income market valuations are unattractive with tight credit spreads and low compensation for risk
- However, credit fundamentals remain decent though quality has increased
- Pursuing relative value trades, margin of safety opportunities, and raising cash/dry powder
- Made switches to ARCC BDC, Athene bonds for better value and risk mitigation
- Reduced exposure to inflated CEFs and added higher quality preferreds