Animal Spirits Podcast Talk Your Book: Navigating Fixed Income in a Crazy World
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Mar 30, 2026 Stephanie LaRosiliere, Head of Business Strategy and Development at Invesco and fixed income specialist. She breaks down how to diversify bond exposure, compares public versus private credit, and explains why ultra-short funds, floating-rate and active ETFs matter. She also discusses rate volatility, AI’s role in credit risk, and which sectors to watch in a downturn.
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Strong Fundamentals Keep Spreads Tight
- Credit spreads stayed subdued because corporate fundamentals remain strong despite macro headlines and rate moves.
- LaRosiliere points to balance sheets and company performance as the reason spreads haven't widened materially.
High Yield Is Higher Quality Than Before
- Today's high-yield market has higher average quality because weaker issuers have defaulted or been culled over time.
- LaRosiliere says the current BB-rated cohort is materially stronger than a decade ago.
Choose Active Fixed Income ETFs For Cost And Tax Efficiency
- Prefer active fixed income ETFs for lower fees and tax efficiency compared with mutual funds.
- LaRosiliere cites lower operating costs, in-kind creation/redemption, and reduced capital gains as ETF benefits.