From Yahoo Finance: 2025-06-02 08:00:00

Despite the recent rise in U.S. Treasury 10-year rates, opportunities still exist in higher-yielding fixed income, according to an active ETF manager. Matt Freund of Calamos Investments sees value in high-yield, bank loans, and emerging-market debt sectors. He anticipates a softening U.S. economy but not a recession yet.

Calamos Investments, founded in 1977, launched the CANQ ETF in February 2024. The fund combines options-based exposure to Nasdaq-100 stocks with diversified fixed-income holdings. CANQ includes fixed-income ETFs like Simplify MBS, Vanguard Emerging Markets Government Bond, and SPDR Portfolio High Yield Bond, with fixed income making up 77.2% of the fund.

Despite the credit risk, CANQ’s 3.1-year duration is shorter than AGG’s 5.8 years with a higher yield of 5.5% compared to AGG’s 3.8%. Freund is not overly concerned with the high-yield allocation given his U.S. economy outlook. He may reduce risk if tariffs, tax cuts, or inflation uncertainties persist.

Freund highlighted potential risk reduction factors like unresolved tariffs, failed tax cuts, or rising inflation. Geopolitical issues could prompt a reduction in risk exposure. The manager remains cautious and ready to adjust the risk budget based on economic developments.



Read more at Yahoo Finance: Opportunities Still Exist In High-Yield Debt: Calamos