DoubleLine Is Buying the Lowest Quality Blue-Chip Company Debt
- Keeping access to capital is incentive to avoid junk rating
- Opportunity seen in pandemic-struck travel, restaurant sectors
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The lowest rated blue-chip corporate bonds are attractive, given fatter yields and less downgrade risk than higher-quality debt, according to Monica Erickson at DoubleLine Capital.
“Companies learned a lesson in 2020 that being investment grade is a significant advantage,” said Erickson, the firm’s head of investment-grade corporates, in a phone interview.