March 2020 / VIDEO
Four Stages of a Credit Crisis and Where We are Now
It’s time to engage in phase three
Key Highlights
- The first stage of a credit crisis is evaluating portfolios based on unanticipated developments, while the second stage is selling securities to meet redemptions.
- Given the velocity of the current correction, it’s time to engage in phase three, targeted risk taking, in anticipation of the fourth phase, market recovery.
- We have identified a number of opportunities for risk taking, including well-capitalized businesses that could potentially be downgraded into the high-yield market.
Given the velocity of the recent correction, it’s time to engage in targeted risk taking, in anticipation of a market recovery. We have identified a number of opportunities for risk taking, including well-capitalized businesses that could potentially be downgraded into the high-yield market.
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March 2020 / INVESTMENT INSIGHTS
Mark Vaselkiv is the chief investment officer of the Fixed Income Division. He is a member of the Asset Allocation Committee.
March 2020 / VIDEO