CLOs are not just a hedge against rising rates. They also have historically provided higher levels of income for a lower level of risk – making a clear case for a strategic allocation.
We expect oil to hold its value due to significant supply-demand imbalances, with the anticipated risk from economic downturns overstated despite investor apprehension from past recessions.
Despite the recent lackluster performance of resource equities, it is important to note that historically, overall cumulative returns tend to rebound effectively during periods of high inflation.