Episode Summary
What if you could enhance returns from fixed income without taking on traditional interest-rate exposure?
And what role does leverage play in both the opportunity and the risk?
Host Jasmine Marichic, Wealth Advisor | Client Relationship Manager, sits down with Ben Jang, Portfolio Manager | Head of Fixed Income, to unpack the Nicola Credit Opportunities Fund and the thinking behind its approach to return-seeking fixed income.
You’ll hear:
• Why this strategy is not a cash alternative or traditional bond replacement
• How shorting, or selling borrowed, government bonds can provide a different approach to leverage
• How credit spreads, rather than interest-rate movements, drive much of the return opportunity
• Why periods of market stress and widening credit spreads can create both risks and opportunities
• How the fund manages leverage, volatility, drawdowns, and recovery periods
• How the strategy can complement traditional bonds, mortgages, private debt, and cash
If you’re thinking about the role fixed income plays in your portfolio, and whether there are ways to seek additional returns while managing interest-rate exposure, this episode is for you. It offers a closer look at an alternative approach to credit investing, including the risks investors need to understand.
Episode Featured on:
The Wealth Exchange
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Disclaimer
This material contains the current opinions of the author, and such opinions are subject to change without notice. This material is distributed for informational purposes only and is not intended to provide legal, accounting, tax or specific investment advice. Forecasts, estimates, and certain information contained herein are based upon proprietary research and should not be considered as investment advice or a recommendation of any particular security, strategy, or investment product. Nicola Wealth Management Ltd. (Nicola Wealth) is registered as a Portfolio Manager, Exempt Market Dealer and Investment Fund Manager with the required securities commissions. This investment is intended for tax residents of Canada who are accredited investors. Residency restrictions apply. Please read the relevant documentation for additional details and important disclosure information, including terms of redemption and limited liquidity. All investments contain risk and may gain or lose value. Please speak to your Nicola Wealth advisor for advice based on your unique circumstances.
