Lancaster-Samuel Says Clients Have a 'Fear of Getting Out'

Watch on YouTube ↗  |  June 09, 2026 at 20:14  |  5:06  |  Bloomberg Markets
Speakers
Baylor Lancaster-Samuel — Senior Vice President and Chief Investment Officer, Amerant Investments

Summary

Baylor Lancaster-Samuel of Amerant Investments discusses the equity cycle, rotation, and fixed income opportunities. She argues fixed income is relatively attractive vs equities based on free cash flow yield comparisons. She recommends locking in 6% yields in investment-grade credit and sees high yield as attractive for carry in a solid economy.

  • Equity markets have doubled since 2022 but clients are reluctant to sell.
  • Forward free cash flow yield on equities is 3% versus 10-year Treasury at 4.5%, favoring fixed income.
  • Not afraid of duration; IG credit yielding 6% is attractive for buy-and-hold.
  • High yield offers carry with shorter duration; solid economy keeps credit risk low.
  • Fed wants to keep rates steady; trimmed mean inflation near 2% may support that view.
Ideas
Baylor Lancaster-Samuel Senior Vice President and Chief Investment Officer, Amerant Investments 1:16
Fixed income yields beat equity cash yields.
Forward free cash flow yield on equities is about 3% while the 10-year Treasury yields 4.5%, reversing the normal relationship where equities yield more. This argues for the relative value of fixed income over equities.
U.S. Fixed Income MED
Baylor Lancaster-Samuel Senior Vice President and Chief Investment Officer, Amerant Investments 2:02
Lock in 6% IG credit yield now.
She is not afraid of duration and encourages clients to buy and hold bonds. Locking in a 6% yield on investment-grade credit is attractive enough, especially with the Fed likely to keep rates steady.
LQD HIGH
Baylor Lancaster-Samuel Senior Vice President and Chief Investment Officer, Amerant Investments 3:03
High yield bonds offer attractive carry.
High yield is interesting as a shorter-duration asset class that provides carry. With the economy in a solid spot, credit risk is manageable and carry is king, even without much capital appreciation.
HYG MED
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This Bloomberg Markets video, published June 09, 2026, features Baylor Lancaster-Samuel discussing U.S. Fixed Income, LQD, HYG. 3 trade ideas extracted by AI with direction and confidence scoring.

Speakers: Baylor Lancaster-Samuel  · Tickers: U.S. Fixed Income, LQD, HYG