A Bright Opportunity for Bonds – Taxable Municipals and Short Duration High Yield – NYL Investments – 9.11.23

Summary:

Now On Demand

After years of income limitations, investors now have the opportunity to access greater yields. However, in today’s bond market landscape, macroeconomic influences are directing investor sentiment and decisions. Factors like shifting-rate dynamics, cash on the sidelines, and the imminent possibility of a recession have prompted a reassessment of risk and investment strategies. Against this backdrop, taxable municipal and short duration high yield assets are standing out as attractive options.

Nate Hudson, CFA, Managing Director at MacKay Shields High Yield Team, and Robert Burke, CFA, Managing Director, Portfolio Manager at MacKay Municipal Managers^TM, offer their perspectives on short duration high yield and taxable municipal asset classes, respectively. The speakers explore where opportunities lie, taking into account the reawakened dynamism of the bond market and the macroeconomic forces shaping it.

Speakers:

Nate Hudson is a Managing Director on the High Yield Team, where he follows the automotive and services sectors. Prior to joining MacKay Shields in 2008, he was a Senior Analyst of High Yield Credit in Strategic Capital’s (White Ridge Advisors) proprietary investment group at Banc of America Securities. Previously, he was a sell-side High Yield Analyst at Banc of America Securities and a High Yield Credit Analyst at Nomura Corporate Research & Asset Management (NCRAM). Nate received a BA from Yale University and is a CFA Charterholder. He has been working in the investment industry since 1991.

Robert joined MacKay Shields in July 2017. Before joining the firm, Robert held various leadership roles in Capital Markets over the last 30 years, spending the majority of his time in the Municipal Markets. In his last role working for Bank of America Merrill Lynch, he managed the Global Futures, Derivative Clearing, and Foreign Exchange Prime Brokerage businesses for the bank. Prior to that, Robert ran Credit Hedge Fund Sales, the group that was responsible for marketing credit & interest rate derivatives, as well as CLOs and structured products to institutional investors. He also worked in the firm’s private equity group, raising capital for LBO and venture capital funds. Robert started his career at BofA Merrill Lynch in the municipal bond department covering insurance, hedge fund, and asset management clients. Robert holds a Master of Business Administration from the Gabelli School at Fordham University and a Bachelor of Arts with High Honors in Economics from Colgate University. He is a CFA Charterholder.

Michael LoGalbo is a Multi-Asset Portfolio Strategist at New York Life Investments. He sits on the Multi-Asset Solutions team, which manages a combined $8.4B in assets (as of 9/30/22), including MainStay’s Income Builder Fund, Asset Allocation ETFs, and bespoke investment solutions. “Macro Mike” combines expertise in economics, markets, politics, and geopolicy to generate fundamental and quantitative top-down investment insights. He is a key contributor to the firm’s asset allocation process, and regular contributor to the firm’s client and media efforts. Michael brings years of experience from both public and private markets, and macro to micro. He is a CFA Charterholder, graduated from the University of Southern California and holds a master’s degree in international economics from Johns Hopkins and an MBA from the Wharton School.