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Assessing Inflation Risk in a Post-Pandemic Environment - NAPFA Credit Only

Assessing Inflation Risk in a Post-Pandemic Environment - NAPFA Credit Only

C-Investments

Eddy Vataru

Published: 8/24/2021

Description:

Covid-19 threw investors a curve ball, leaving the fixed income markets with low treasury yields and extremely tight spreads across the investment grade spectrum (corporates and MBS). But, as vaccines are distributed and growth recovers, inflation could pose a significant risk to investors given the low- yield environment. Investors should be asking a number of questions: Is the Fed’s dovish stance creating an environment where inflation could get out of hand? Could the markets be setting up for a temper tantrum that could be more dramatic than 2013? How can you address the need for income and capital preservation in this environment?

During the presentation, Eddy Vataru, lead portfolio manager for the Osterweis Total Return Fund, will look at how 2020 shaped the fixed income market, and the risks to investors given the current environment. He will discuss the possible risks of the Federal Reserve’s dovish policy and the low-rate environment and offer perspectives on various measures of inflation and how they can inform inflation expectations going forward. Finally, he will identify opportunities for active management of fixed income portfolios, including managing duration and active sector rotation.


Learning Objectives:

  • Understand the current fixed income market and risks to investors
  • Understand risks related to Fed policy and low interest rates
  • Gain an understanding of measures of inflation
  • Identify opportunities in the fixed income market

Speaker Bio:

Eddy Vataru graduated from California Institute of Technology (B.S. Chemistry & Economics) and from Olin Business School at Washington University in St. Louis (M.B.A.). Mr. Vataru holds the Chartered Financial Analyst designation. Prior to joining Osterweis Capital Management in 2016, Mr. Vataru worked in senior management positions at Incapture, LLC and Citadel, LLC.

Prior to that he spent over 11 years at BlackRock (formerly, Barclays Global Investors), where his last position was as Managing Director and Head of U.S. Rates and Mortgages. While in this role, BGI worked with the U.S. Treasury in implementing its Agency MBS Purchase Program, buying mortgages for the U.S. government from 2008-2009.

Mr. Vataru is a principal of Osterweis Capital Management and the lead Portfolio Manager for the total return fixed income strategy.

1 NAPFA CE in C – Investments will be posted in your NAPFA CE record after downloading this recording.

This is a recorded webinar from August 24, 2021.

After purchase, you may access your recorded course under the My Webinars link on your My Account page of the NAPFA website for the next 90 days.