“An incredibly favorable scenario for investors in this environment is this concept of a “dare-to-dream” scenario. That’s where, if you’re invested in floating rate debt, we’re now in this environment where it’s possible that rates stay elevated for years and we never have a giveback of the income because defaults stay very benign (as they have so far).”
Chief Market Strategist Troy Gayeski joined “Bloomberg The Open” to discuss the economic forces driving high yields and the possibility of a dare-to-dream scenario for investors.
Troy discussed inflation indicators, duration risk, the impacts of labor policy and how the Fed (and other central banks’) movements could shape what’s next for the market.
Watch the video to hear more from Troy.