Bloomberg Surveillance · Friday, July 17, 2026
Amanda Lineham, Chief Credit Strategist at Goldman Sachs, argued that investors face an "opportunity cost" by being overly defensive in the current market. She highlighted that while IG bonds have been flat, high-yield bonds and leveraged loans have seen significant positive returns, suggesting that a diversified portfolio including these assets is crucial for long-term investment success.
“If you looked at that chart, Tom and you maybe you started it at year in twenty twenty one, which is just before the Fed started hiking rates and just before interest rates really started their trend upward, what you would see is that IG bonds are roughly flat. However, high yield bonds are up over twenty percent leverage loans floating rate are up over thirty percent over that same timeframe.”
“So I think this speaks to the point that we've been emphasizing for a bit, and very relevant for your audience as well, is that there's an opportunity cost to being too defensive in this market.”
“And so that's the point. On devers, I've never. Asked this question, and how long have they been doing this sex seven or eight years. I've never asked this question. How much of our four to one k's in America are in boring, sleepy, underperforming bonds versus the high yield magic you just talked about.”