Diversifying a bond portfolio with credit can be a smart move for investors looking to increase their yield potential.
In the discussion on this topic, the host emphasized the importance of considering credit as part of a bond portfolio, especially for those looking to boost their returns.
It is suggested that investors should consider taking a portion of their fixed income portfolio, typically around 10-20%, and directing it towards higher yielding options such as credit funds or debt funds.
By doing so, investors can potentially increase their overall yield while still maintaining a diversified portfolio.
In this episode of Tech Equity and Money Talk, Michael Episcope from Origin Investments discusses the rise of credit and debt funds in the private equity market.
He explains that these funds invest in a part of the capital structure that's more protected than equity, aiming to provide stable income through yield.
Listeners are advised to be cautious of inexperienced managers rushing to invest due to the pressure of closed-end funds.
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Listen to the full episode here:
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YouTube:
https://youtu.be/0mNWbvETv5U
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Audio Podcast:
https://www.techequityandmoneytalk.com/debt-and-credit-funds
