Bloomberg Surveillance · Thursday, August 6, 2026
Julia Herman recommends short maturity credit as a strategic move for investors facing current market volatility. She explains that this approach helps mitigate risks from both rate fluctuations and short-term economic outlook uncertainties, such as the impact of higher gasoline prices on consumer behavior. Herman suggests that focusing on yield through short-term investments can offer a more stable total return.
“It's a really good opportunity right now for not just short duration, but short maturity credit right now in our view, and that allows investors to think about that buy and hold opportunity, which, yes, which as a total return perspective, is going to lean you more toward the yield perspective.”
“Keeping everything short maturity specifically, in our view, is as solved for the two key sources of volatility right now, rates of all, of course, but also questions about the shorter term economic outlook, given that the impact of higher gasoline prices stemming from Iran has already contributed to consumers trading down, for example, that's data out of the Beige Book in the last few weeks.”