In this episode, we welcome Sarah Browne, MFE, CFA, Fixed Income Portfolio Manager of Foster & Motley, Inc., to discuss the evolving role of non-traditional fixed-income investments. Sarah explores how this asset class has grown since the 2008 financial crisis, how it differs from traditional fixed income, and what investors should consider when integrating these investments into their portfolios.
Key Takeaways:
(01:27) The 2008 crisis led to tighter banking rules and new lending gaps.
(02:12) Non-traditional fixed income includes private credit and asset-backed securities.
(03:55) Private credit can be high quality with strong underwriting.
(05:23) High minimums make access tough for individual investors.
(06:04) Non-traditional investments boost diversification and income.
(07:42) Private credit yields range from 9% to 11% annually.
(08:30) Yields aren't guaranteed and depend on market conditions.
(09:02) Selecting high-quality funds is key to managing risk.
Resources Mentioned:
Foster & Motley, Inc. LinkedIn -
https://www.linkedin.com/company/fosterandmotley/
Foster & Motley, Inc. Website -
https://www.fosterandmotley.com/
Connect with Sarah Browne -
https://www.linkedin.com/in/sarah-k-browne/
info@fosterandmotley.com
+1 513-561-6640
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