As I’ve written about recently, I’ve allocated almost all of my clients’ bond investments to Treasuries and away from corporate bonds the last couple years. This worked well especially early in the pandemic / economic crisis we find ourselves in currently as corporate bonds lost value and Treasuries gained initially. However, it may be time to change tact. Continue reading “Changing Tact and Swimming Naked”
Here’s a good chart showing corporate leverage and its correlation to cyclical peaks. This is one reason I’ve been avoiding corporate bonds in favor of Treasury bonds the last few years.
I don’t think the next crisis will begin with mortgage defaults this time around but with a wave of corporate defaults.