David Albrycht, CFA
President and Chief Investment Officer
Newfleet Asset Management, LLC
David Albrycht, President and Chief Investment Officer of Newfleet Asset Management, shares his latest views in the Virtus ‘Volatility in Perspective’ series. Dave discusses current risks in the bond market, Fed and Central Bank actions, how the market has changed in the past few weeks, and how Newfleet is positioning its multi-sector portfolios.
Discussion topics include:
• Current risks: economic downturn for the U.S. and globally; effectiveness of fiscal and monetary policy of central banks and the Fed; health care risk – when will the virus peak, ultimate duration of the pandemic.
• Fed actions to-date and what we may expect going forward.
• Sector-specific views on high yield, bank loans, investment grade corporates, emerging market debt, and municipal bonds, among others.
• Where the team is identifying opportunities and how they are positioning the multi-sector bond portfolios in the current environment.
• Dave fields questions from financial advisors regarding the impact of the pandemic on the fixed income market.
Companies discussed may or may not represent positions within any Newfleet portfolio.
IMPORTANT RISK CONSIDERATIONS
Credit & Interest: Debt securities are subject to various risks, the most prominent of which are credit and interest rate risk. The issuer of a debt security may fail to make interest and/or principal payments. Values of debt securities may rise or fall in response to changes in interest rates, and this risk may be enhanced with longer-term maturities. Foreign & Emerging Markets: Investing internationally, especially in emerging markets, involves additional risks such as currency, political, accounting, economic, and market risk. High Yield-High Risk Fixed Income Securities: There is a greater level of credit risk and price volatility involved with high yield securities than investment grade securities. ABS/MBS: Changes in interest rates can cause both extension and prepayment risks for asset- and mortgage-backed securities. These securities are also subject to risks associated with the repayment of underlying collateral. Bank Loans: Loans may be unsecured or not fully collateralized, may be subject to restrictions on resale and/or trade infrequently on the secondary market. Loans can carry significant credit and call risk, can be difficult to value, and have longer settlement times than other investments, which can make loans relatively illiquid at times.Market Volatility: Local, regional or global events such as war, acts of terrorism, the spread of infectious illness or other public health issue, recessions, or other events could have a significant impact on the fund and its investments, including hampering the ability of the fund’s portfolio manager(s) to invest the fund’s assets as intended. Prospectus: For additional information on risks, please see the fund’s prospectus.
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