Buzzberg Cup Live

The Opportunity Cost of Cautious Investing: Lynam

Watch on YouTube ↗  |  July 18, 2026 at 12:28  |  8:00  |  Bloomberg Markets
Speakers
Amanda Lynam — Chief Credit Strategist, Goldman Sachs

Summary

Amanda Lynam, Goldman Sachs chief credit strategist, discusses the opportunity cost of defensive bond investing, highlighting the outperformance of high yield and leveraged loans. She argues for credit allocation focused on carry, prefers front-to-intermediate duration over long bonds, and notes Goldman's recommendation of gold as an inflation hedge. She also addresses how hyperscalers' massive AI capex will be financed and the evolving role of bonds in portfolios.

  • High yield bonds and leveraged loans vastly outperformed broad bonds since 2021.
  • Credit investors should buy for income not spread tightening or rate declines.
  • Front and intermediate Treasuries preferred over volatile long-end bonds.
  • Goldman Sachs portfolio strategists recommend gold for inflation protection.
  • Hyperscalers' $5.8T AI capex will be funded across multiple channels, not overwhelming bond markets.
  • Fed expected to hold rates through 2026, supporting carry in shorter maturities.
  • Traditional 60/40 portfolio needs real assets given market shifts.
Ideas
Amanda Lynam Chief Credit Strategist, Goldman Sachs 0:50
Buy high yield and loans for carry
High yield bonds and leveraged loans have significantly outperformed broad bonds since 2021, and investors should allocate to credit for income and yield rather than for tighter spreads or lower rates, as spreads are already tight and rates are expected to stay on hold.
HYG Leveraged Loans MED
Amanda Lynam Chief Credit Strategist, Goldman Sachs 3:21
Gold recommended for inflation protection
Goldman Sachs portfolio strategists recommend gold as part of a diversified portfolio, emphasizing the role of real assets for inflation protection given shifts in the market that make traditional 60/40 less straightforward.
GLD LOW
Amanda Lynam Chief Credit Strategist, Goldman Sachs 7:25
Favor short-to-intermediate bonds over long bonds
Prefer front and intermediate parts of the yield curve because long-end bonds like 30-year Treasuries are too volatile (whippy), and with the Fed expected to hold rates through 2026, shorter maturities offer attractive carry.
Short-to-Intermediate-Term US Treasuries MED
Amanda Lynam Chief Credit Strategist, Goldman Sachs 7:25
Favor short-to-intermediate bonds over long bonds
Prefer front and intermediate parts of the yield curve because long-end bonds like 30-year Treasuries are too volatile (whippy), and with the Fed expected to hold rates through 2026, shorter maturities offer attractive carry.
TLT MED
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This Bloomberg Markets video, published July 18, 2026, features Amanda Lynam discussing HYG, Leveraged Loans, GLD, Short-to-Intermediate-Term US Treasuries, TLT. 4 trade ideas extracted by AI with direction and confidence scoring.

Speakers: Amanda Lynam  · Tickers: HYG, Leveraged Loans, GLD, Short-to-Intermediate-Term US Treasuries, TLT