Fed action need not stymie credit strategies


For the first time in the past few decades, credit investors have to contend with duration risk in their portfolio. Default risk has historically been perceived as the primary risk of investing in the debt of leveraged companies, with duration risk being viewed as largely negligible. Given the recent announcement by the US Federal Reserve about the impending reduction of bond purchases in 2014, many market participants are now asking if credit strategies still have legs in a rising rate

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