While we see stronger fundamentals for the High Yield Bond market, valuations are still unattractive to us at this point. We estimate that High Yield Bond investors should roughly expect 2.9% total returns for a well-diversified portfolio for the year ahead.
To generate a 3% return, we would personally prefer to sell a 1-year put option on the S&P 500, with a strike at 2,500 (26% below the current index level of 3,386). For such a strategy, we would receive the 3% option premium upfront and if
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