What’s covered in this episode:
- Why credit spreads are the major driver of returns for high yield bonds
- The importance of the underlying credit quality of a business in this environment
- The need to focus on cash flows, particularly in uncertain times
- The robust state of the US energy market compared to recent history
- Targeting recession proof businesses over cyclical credits and the importance of being selective in this environment
- Businesses that can flourish or flounder in an inflationary backdrop
*Credit spread refers to the difference in yield between a government and corporate bond of the same maturity.
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