First Trust’s William Housey On Active Versus Passive Fixed Income Matters

Why Fundamental Credit Analysis Matters

William Housey, Senior Portfolio Manager, First Trust Portfolios, sat down with Julie Cooling, Founder & CEO, RIA Channel to discuss the importance of active credit management within the area of high yield bonds and floating rate senior loans. Housey emphasizes the shortcomings of passive, indexed fixed income ETFs.

First Trust incorporates fundamental research in the area of fixed income, to perform in depth credit analysis on individual bonds.  Their goal is to ultimately drive income while minimizing volatility to deliver consistent, risk adjusted returns. Housey further discusses high yield market correlations as it relates to improving diversification benefits within a fixed income allocation.