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Four Reasons Credit is Attractive Now
Key Insights
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In this environment, we can outline four reasons why a reallocation from stocks to credit securities could benefit a broadly diversified portfolio.
- Cheap valuations relative to stocks and the search for yield and income should favor corporate debt issues, including high yield bonds.
- Credit markets are buoyed by support from the Fed, and indiscriminate selling has created compelling opportunities for active management.
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