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Jason Pride, director of Investment Strategy at Glenmede, on why investors should take risks on high-yield bonds in today’s market environment.
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Growth scare in the near term and say you better off taking credit risk than equity risk believe it or not joining us now Jason pride director investment strategy for Glenn need.
Credit risk you're talking months.
For the response -- high yield -- you know when you when you look at high yield you get right now at a slower growth economic environment.
Equity returns are okay -- for the next 510 years but they're not thinking that we can really get all that excited about that period.
And Indian point opponents gonna produce a -- -- this is some percent return.
-- bond or portfolio bonds of produces a 55 -- -- 6% return.
What happened risk.
But seemed like a pretty good deal to us do you think -- so many -- consider these corporate bonds are considered high yields because -- rating agencies are so behind people.
No no I mean there's a lot of -- huge universe of bonds out there there companies are kind of up and coming in they deserve -- high status and active.
We have -- -- they have the ability situations they have a high yield because the higher risk right not as developed.
Or they have some problem within the company that just -- allowed them to get to that better credit rating they perhaps have just make sure my debt.
We want these cases you can fully within those sectors.
Companies and and and businesses that are likely get credit upgrades -- put credit younger actually so.
You know taking an active man approached very close to break it up through what about the banks and mean their trading as if -- high -- these statements are another story for us that's it that's the six -- straight from general.
National level in the US her -- thanks very much.
But actually just recently I think we -- -- -- lost my.
-- -- -- -- -- We did -- -- check yet time.
We can -- carrier okay in my sustained pain -- -- excuse me Erica Hillary.
So let's talk let's talk quickly then about the equity side of the world would you stay out of equities altogether.
We're not out of equities altogether we've been taking an approach that we want to be in the middle the -- spectrum that means.
Not all the way into traditional long only equity portfolios -- -- hiding in passion and treasuries.
So within that you -- -- the equities dividend growth companies occupy an interest in -- indeed very close to the same returns has its traditional.
Equity portfolio with -- some.
-- these are ever since -- -- hear from a lot of right he's trying to get.
Get paid to wait wait you get paid it a coupon -- bond exact get -- dividends and you even suggest covered calls kind of the same thing taken a little insurance.
The idea here is to take risks but not take too much risk be very intelligent with how you're taking those risks -- -- -- situation.
It's good stuff and I appreciate your patience with all they sent our little Mike technicalities there Jason pride that there had been.
Values are rare it's better have to have to metastatic it let me thank you thank you we heard -- all right I'll I -- my.
