Target Portfolio Composition
Throughout Economic Cycle
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During periods of economic slow down, the risk /reward of owning bank debt outweigh the potential gain in equities, as restructuring and bankruptcies increase
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As the economic environment improves, corporate cash flow and balance sheets improve, increasing the attractiveness of unsecured debt
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As confidence in the economy increases, companies begin to engage in M&A and capex programs financed with debt to drive revenues; equity becomes more attractive than debt on a risk reward basis
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