2022
Podcast: Opportunities in Fixed Income? Say It Ain’t So
Wait, you saw “Fixed Income” in the titled and still clicked? Good on you.
For the most part, investors choose fixed income products (such as bonds) primarily to protect from market downside.
Of course, that downside protection aspect of fixed income was flipped on its head this year. Due to unforeseen circumstances such as the Russia/Ukraine war and China effectively halting production across the country, we’ve endured the highest inflation seen in 40 years. The interest rate increases that have ensued have hammered bond returns in the process.
However, there could be some intriguing investment opportunities in fixed income on the horizon.
To talk about this and more, I’m joined by Sean Rosas, our CI Assante Private Client Investment Counsellor, who should be a familiar face to some of you. Sean briefly touches on his international resume before talking about opportunities in fixed income, private equity, private infrastructure and more.
You can listen to the podcast on these popular platforms.
Or, you can watch the video podcast below.
Here are some highlights from the episode
Fixating on Fixed Income
There’s a lot of negative connotations surrounding higher interest rates – and rightly so.
However, one positive about being in a higher interest rate environment is that there are new opportunities to invest in fixed income.
Sean talks a bit about some of those opportunities here.
Private Equity vs. Stocks
About a year ago, we produced a great episode breaking down the world of private equity with Scott White, who works with the well-respected Private Equity company, Adams Street.
So, aside from the fact that stocks are publicly traded and private equity isn’t, what exactly is the difference between private equity and stocks?
I tell you about a key differentiator between the two, at least in terms of price movement, in the clip below.
Private Infrastructure
Ah yes, the “cousin” of Private Equity.
Private Infrastructure is an intriguing asset class for several reasons. One of those key reasons is that it just hasn’t been accessible to individual investors very often.
It’s an asset class that has long been accessed by Pension Funds (like Canada Pension Plan) and University Endowment Funds. However, we’ve been pleased to get access to Private Infrastructure investments through our Private Client platform.
Here’s Sean talking about Private Infrastructure, and what kind of businesses you might invest in within this type of fund.
Difference between markets and the economy
Hint: it’s all about how both react to financial events, such as interest rate hikes.
Next episode
This is effectively our last episode of 2022. Our next episode will focus on the market outlook for 2023.
Thanks again who all of you who listened and followed throughout the year – whether that means listening to full episodes or periodically checking out our recaps.
Wishing all clients, readers and listeners a very Merry Christmas and a Happy New Year.
Until next time,
Assante Sana
John Lawson (CFP®, CIM, FEA), Senior Wealth Advisor
Sana Family Office | Assante Capital Management Ltd.
Assante Capital Management Ltd. is a member of the Canadian Investor Protection Fund and the Investment Industry Regulatory Organization of Canada.
