Video: Protect Your Portfolio With Long/Short Credit

Just when bond yields started moving higher, they’ve turned around. The Federal Reserve removed the word “patient” from its most recent policy statement, but it’s unclear when or even if the central bank will begin raising interest rates – particularly after offering a weak economic outlook for the U.S.

For all of these reasons, Steve Mason, portfolio manager for Collins Capital, favors a long/short approach as a “better risk-adjusted way to play credit over the next few years.” In this video, Mr. Mason says there are good opportunities in the high-yield market, “but you really have to dig deep” to be properly compensated – hence his preference for an “opportunistic” approach. On the short side, Mason says some of the energy and related complexes “could still be interesting.”

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