2023 Will Be a Great Total Return Year: Invesco's Waldner

The video discusses the current state of high yield markets, noting wide spreads and specific dynamics in the energy sector. It highlights the uncertainty surrounding the Federal Reserve's future actions and potential recession impacts. The speaker suggests focusing on higher quality investments. Looking ahead to 2023, the expectation is for a strong total return year, assuming the Fed concludes rate hikes early in the year, which historically leads to positive fixed income performance.

What is a notable change in the high yield market, particularly in the energy sector?

• Energy spreads have widened significantly.

• Energy spreads have tightened compared to a few years ago.

• Energy spreads have remained constant.

• Energy spreads have disappeared.

What is a major concern affecting high yield investments according to the discussion?

• The stability of energy prices.

• The high cost of investment.

• The lack of investment opportunities.

• The potential actions of the Federal Reserve and a possible recession.

How might rising yields affect total return in the current year?

• By increasing the price of bonds.

• By focusing solely on coupon returns.

• By potentially leading to a total return focus.

• By decreasing the overall market volatility.

What is the expected outcome for fixed income investments in 2023?

• A focus on equity investments.

• A decline in total return.

• A strong total return year.

• A stagnant market with no growth.

When is the Federal Reserve expected to finish raising rates according to the outlook?

• In the second quarter of 2023.

• By the end of 2023.

• In the first quarter of 2023.

• In the last quarter of 2022.