Looking for Opportunities in Structured Credit

The video discusses the repositioning of portfolios towards structured credit, highlighting the attractiveness of the Cielo market. It explores why the market may not fully value these opportunities due to their complexity and lack of retail access. The forecast for the year suggests a shift towards structured credit due to high equity valuations. The discussion also covers the decline in interest for activist equity and M&A, and the trade-off between interest rate risk and credit risk, with a focus on avoiding long-term duration risk in Treasuries.

What is one reason the Cielo market is considered undervalued?

• High retail access

• High inflation

• Complexity of securities

• Low interest rates

What is driving the potential pick-up in the structured credit market?

• Rising inflation

• Equity valuations

• Increased retail access

• Decreasing interest rates

Why is there a shift away from long-term Treasuries?

• Better retail access

• Interest rate risk

• Higher credit risk

• Increased inflation risk

What was the impact of Brexit on interest rates?

• Rates increased significantly

• Rates remained stable

• Rates were unaffected

• Rates decreased to 1.35%

What is the potential financial impact of holding a 10-year Treasury if rates increase?

• Significant financial loss

• No financial impact

• Minimal financial loss

• Significant financial gain