Venkatesh (Venk) Reddy, founder of Zeo Capital Advisors, will be presenting this webinar. Prior to Zeo, Venk was a co-founder of Laurel Ridge Asset Management, a $400M multi-strategy hedge fund where he managed credit, distressed, and event-driven portfolios. In that role, Venk specialized in bankruptcy law, asset valuation, and opportunities at the intersection of quantitative and fundamental analysis. Previously, Venk was head of Delta One trading, and he structured derivative products as a portfolio manager within Bank of America’s Equity Financial Products group (EFP). Venk earned a B.A. in computer science with honors from Harvard University.
This webinar presents the framework for understanding the challenges of finding yield in today's low-interest rate environment and explores the risks of various yield-seeking strategies. We first examine the reasons for maintaining a fixed-income allocation despite historically low yields. We examine the various risks that investors may be taking either by leaving fixed income or by reaching for higher-yielding strategies (including financing, duration, and default risks). Then we compare the perception of default risk to the reality of other risks using historical default rates and interest-rate moves through an analysis of the potential impact on principal. We review why fundamental and active approaches to fixed income should be viewed as an entirely different category within fixed income and why most investors don’t currently do so. We conclude by providing actionable ways in which investors can apply this new framework in their portfolios.
Learning objectives:
· Review the needs served by fixed income
· Identify potential risks in yield-seeking strategies
· Compare relative risk scenarios for a 1% rise among fixed-income asset classes
· Learn how a fundamental, active approach can result in an entirely different risk category
1 NAPFA CE - Investments
1 NASBA CPE - Administrative Practice
1 CFP CE - Pending
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