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Bryce Doty, senior portfolio manager at Sit Investment Associates says that the problem at the heart of the current banking crisis is not a default problem, but rather is a logical outcome from how quickly the Federal Reserve raised interest rates. He expects it to keep impacting the value of fixed-income securities until things stabilize; that, in turn, will create more opportunities for closed-end fund investors who should benefit from good yields now and additional returns when widening discounts narrow once the banking industry and investors are less worried about insolvency.
By Active Investment Company Alliance4.7
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Bryce Doty, senior portfolio manager at Sit Investment Associates says that the problem at the heart of the current banking crisis is not a default problem, but rather is a logical outcome from how quickly the Federal Reserve raised interest rates. He expects it to keep impacting the value of fixed-income securities until things stabilize; that, in turn, will create more opportunities for closed-end fund investors who should benefit from good yields now and additional returns when widening discounts narrow once the banking industry and investors are less worried about insolvency.

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