The recent financial crisis has produced a mass migration from “risky assets” to “safety assets.” Risky assets (stocks, corporate bonds, commodities, etc.) were sold indiscriminately while safety assets (mainly government bonds) were bought indiscriminately.

In a “normal” investment environment, corporate bonds fall midway on the risk/return spectrum between risky assets and safety assets.  In the recent environment, even investment grade bonds were viewed as quasi-equity and sold off sharply. This has led many commentators to conclude that corporate bonds now present a unique investment opportunity, offering equity-like returns with below-equity risk. 

Given the extraordinary current environment, what should an investor do? Are the high yields in the credit markets a better choice than the potential gains in a beaten-up stock market? This special report addresses that question in a roundtable discussion among investment professionals representing three of BNY Mellon Asset Management’s investment boutiques: Standish, Mellon Capital Management Corp., and The Boston Company Asset Management.

For more information or a hard copy please contact, please contact David Zigas at 617 248-6202.

The preceding information is based upon the analysis of historical performance of various asset classes and assumptions with respect to future economic conditions. Past performance is not an indication of future results. This information is not intended to provide specific advice, recommendations or projected returns of any particular BNY Mellon Asset Management product.