Fed cuts of course uh for the second time this year may help things. With us now to discuss the implications for the overall credit market is Oakree Capital Management's head of liquid performing credit, co-portfolio manager David Rosenberg. >> I guess u 25 basis points lower of never hurts overall the overall credit market, right.>> It's certainly not a bad thing. I think the market the real question is does that mean we get another cut in December and another cut in January and so forth. And I think that ...

Fed cuts of course uh for the second time this year may help things. With us now to discuss the implications for the overall credit market is Oakree Capital Management's head of liquid performing credit, co-portfolio manager David Rosenberg. >> I guess u 25 basis points lower of never hurts overall the overall credit market, right.>> It's certainly not a bad thing. I think the market the real question is does that mean we get another cut in December and another cut in January and so forth. And I think that ...

Uh the bankruptcies of two companies in the auto sector have heightened concerns around certain parts of the credit market. Glenn August is founder and CEO of Oakhill Adviserss and joins us now here at Case. It's good to see you. >> Good to see you.>> So you you do business in many parts of of credit, right. Private credit, leverage loans. Last year at this conference, I sat here asking people if there was a bubble in private credit.I think it's relevant now to ask you whether we're starting to see the firs ...

Bond Market Reaction & Fed Policy - The long end of the curve is considered cheap based on valuation metrics, but the front end could also move if economic data weakens due to a prolonged shutdown [2] - The market is pricing in gradual Fed cuts to neutral, but a worsening economy (unemployment rate above 45%) could lead to more aggressive Fed action [2] - An independent Fed is responding to data and aiming to reduce the level of restrictiveness, making bonds attractive [6] - The Fed is expected to cut rates to 3%, which is close to neutral, even without a significant slowdown [8] Auction & Demand - End-user demand for Treasury auctions remains strong, indicating structural positives in the US economy [5] - Structural positives in the US economy, such as AI capex and strong corporate fundamentals, are driving demand for US bonds [6] - People look at 55%-6% in high-quality bonds and they like it [6] Investment Strategy & Risk Hedge - The 5 to 10-year part of the curve is considered a sweet spot, offering a balance between yield and duration risk [3][14][15] - Bonds are still considered a hedge, especially with the Fed likely to cut rates more aggressively [12][13] - Investors may diversify into other assets like gold and cryptocurrency, but US Treasuries remain a safe haven [9][10][11][12] - High-yield market can offer yields higher than 5%-6% without taking on that much duration risk [15]