Episode Details

Ravi Chintapalli, Client Portfolio Manager covering leveraged finance for the Nuveen Global Fixed Income team, says that he has never seen a high-yield market that has been higher quality than what he is seeing now. That helps to explain tighter spreads, and suggests they should not shy away from high-yield because they're being compensated for "the true level of default risk in the market." On the loan side, Chintapalli says that while the Federal Reserve has entered a rate-cutting cycle, it shouldn't scare investors out of floating-rate loans, because they would be passing up high levels of income as a starting point to minimize default risks that are already quite low and likely to stay that way.