Up, Up, and Away to Higher Income: Superman's Guide to Navigating Economic Uncertainty

Kryptonite or Opportunity? The Tariff Tango

Greetings citizens of Earth! Your friendly neighborhood Superman here reporting for duty... on the economy! Seems like even with my X ray vision predicting these tariffs is trickier than finding a decent cup of coffee in Metropolis after Lex Luthor's been playing barista. According to Goldman Sachs we're in for a wild ride with those tariff deadlines looming faster than I can say 'Up up and away!' Apparently 'the next couple of months of data are going to be the proving ground' for understanding how these tariffs will shake things up. It's enough to make even Superman sweat... metaphorically of course. My Fortress of Solitude is well air conditioned.

The Fed's Tightrope Walk: A Balancing Act Better Than Mine!

The Federal Reserve is playing a game of economic Twister holding steady on interest rates while juggling inflation and growth expectations. They're hinting at a couple of rate cuts this year but it's all about timing. Simon Dangoor from Goldman Sachs says the Fed will likely stay put next month but if the labor market weakens those rate cuts might just swoop in like... well like Superman saving the day! It's a delicate balance folks. One wrong move and... well let's just say even Lois Lane couldn't spin that into a good headline.

Credit Spreads: More Expensive Than a LexCorp Gadget!

Now Dangoor's focusing on income because credit spreads are tighter than the spandex on my suit. He admits they're 'frustratingly expensive,' but hey at least corporate fundamentals are looking pretty good. It's like finding a diamond in the rough... or a whole Kryptonite free planet! According to Goldman companies are behaving themselves which means they're building their portfolios for the long haul. That’s music to my super hearing!

Securitized Products: Not As Scary As They Sound!

Securitized products particularly collateralized loan obligations (CLOs) are where it’s at apparently especially those AAA rated assets. The Janus Henderson AAA CLO ETF (JAAA) boasts a yield that's higher than Lex Luthor's ego. And while the underlying bank loan issuance is 'reasonably soft,' strong demand keeps those CLOs behaving like super powered investments. That means a good return on investment! "To me that sounds like music!"

New Issue CLOs: A Golden Opportunity?

Dangoor’s a fan of new issue CLOs where you get a long reinvestment period and a chance to build a portfolio of new loans underwritten to the current environment. It's like getting to train a whole new generation of superheroes! So while it may seem like financial rocket science this is actually a straightforward approach for creating a robust income stream. Even I can understand it and I once flew around the world backwards to turn back time! Don't ask.

CMBS: Commercial Mortgage Backed Securities

For those who like a little extra adventure Dangoor sees opportunities in commercial mortgage backed securities (CMBS) especially single asset single borrower deals on high quality office buildings. Do your homework he says and these can offer attractive value. If you're ready to put in the effort to understand the market Superman says "You'll be flying high in no time!"