Falling U.S. interest rates may lead some investors to take a closer look at the high-yield bond market. Anthony Imbesi, Vice President and Director for High Yield Portfolio Management at TD Asset Management, speaks with MoneyTalk’s Greg Bonnell about the opportunities and potential risks.
Transcript
Greg Bonnell – In a falling interest rate environment, investors may be considering the potential opportunities in fixed income. Joining us now to discuss how things look in the high yield space is Anthony Imbesi, VPN Director for High Yield Portfolio Management at TD Asset Management. Anthony, welcome to the program.
Anthony Imbesi – Thanks for having me, Greg.
Greg Bonnell – All right. Your first time here. We do this with a first time guest. We get them to tell a little bit about their work and what they do here, here at the bank, and part of the strategy for the audience.
Anthony Imbesi – Well, as you mentioned, I’m a portfolio manager. I’ve been with TD Asset Management 8 and 1/2 years. And I’m responsible for the fixed income mandates, in particular the high yield sleeves of the portfolios that we manage in the active fixed income team.
Greg Bonnell – Obviously, high yield can be an interesting space and perhaps one that is not well understood by investors when you start talking about fixed income. So give us an overview of the high yield market. What is it comprised of?
Anthony Imbesi – Well, the high yield market is essentially any debt, whether it’s bonds or loans, that’s rated below investment grade. So anything with a Triple B-minus rating or lower is considered high yield or leveraged credit. And it’s quite a big market. The US dollar market is about $1.3 trillion in size. If you include a euro-denominated high yield, and emerging markets, and leveraged loans, you can get to $3 and
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