Greg Peters
speaker
64 appearances
1 recordings
1 series
first heard Dec 2018
last heard Dec 2018
Greg Peters’s voice in public audio — every appearance, attributed to the second.
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Appearances
WSJ Your Money Briefing · Special Fed Coverage: How Investors Should Read a Rate Hike · 19 Dec 2018
podcast
They had no other choice but to go out and buy real estate, stocks, high yield bonds, etc.
Today, that choice is very different.
So with rates higher and now quantitative easing turned to quantitative tightening, investors don't have to go at the risk curve.
And I think you need to kind of take that signal to heart and become more defensive.
There is indeed.
And that is yields in the more defensive part of the fixed income markets are higher.
And I think that is good news for savers.
And so this goes back to this notion where quantitative easing took front end rates down to zero, which made it a really difficult task for savers to actually earn any income.
That has reversed.
And so I think it's a much, much better environment for savers.
It's been since the crisis, which is 10 years.
So, yeah, it's been quite some time.
And so I think we're in a very different place, obviously, than we were 10 years ago.
And I think savers will benefit.
And they're actually getting enticed to be defensive.
And I think that enticement is an important one, and investors should take heed.
I think so on the margin.
And so you've seen a tremendous demand for levered loans on the retail side over the past couple of years.
So a levered loan is basically a form of financing that companies take on in loan form versus a bond form.
And post-crisis, what you've seen is a lot of lending going through the loan market versus the bond market.
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