BlackRock's Miller: High-Quality Fixed Income Looking 'Reasonable'

The video discusses the rising cost of capital and its impact on investment strategies, highlighting the difference between debt spreads and all-in levels. It examines the challenges of investing in high nominal yields amidst reduced credit quality and market volatility. The discussion also covers the implications of aggressive monetary tightening by the Fed, the potential for market disruptions, and the specific challenges faced by investment-grade credit and levered strategies.

What are the implications of rising debt spreads in the investment grade and high yield markets?

How has the cost of capital changed for companies seeking funding compared to a year or a year and a half ago?

What strategies can firms and households employ to manage liabilities in a high interest rate environment?

What factors contribute to the volatility in the rates market, and how does it affect investment decisions?

Discuss the potential risks associated with leveraged business models in the current financial climate.