FYI: SkyBridge Capital is betting against U.S. corporate credit to protect against whatever recession might be coming.
The biggest risk to the market is China, “and how disruptive that can be” to emerging markets, SkyBridge partner and senior portfolio manager Troy Gayeski told the Greenwich Economic Forum on Friday. But to find the biggest danger spots elsewhere, he said, investors should look for the areas that have “built up the most leverage since the crisis,” he said.
Emerging markets fall within that group, but in the U.S., the key area is high-yield bonds and leveraged loans, he said.
Regards,
Ted
https://www.barrons.com/articles/skybridge-capitals-big-short-is-high-yield-bonds-1542630600?refsec=funds
