Money Life with Chuck Jaffe

Friday, Dec 06, 2024

Brandon Thurber

chief market strategist, Regions Asset Management

The Big Interview

On Twitter: @RegionsBank

Links: regions.com

Friday, Dec 06, 2024

Kevin Mahn

president/chief investment officer, Hennion & Walsh Asset Management

The NAVigator

On Twitter: @KMahnHW; @HennionandWalsh

Links: hennionandwalsh.com; smarttrustuit.com

ShortHeadline: Hennion & Walsh's Mahn says rate cuts will push investors toward BDCs

DetailInformation: Kevin Mahn, president and chief investment officer at Hennion & Walsh Asset Management -- which runs the Smart Trust Unit Investment Trusts -- says that he expects the Federal Reserve to cut rates over the next two years, which will drive investors to turn for income alternatives "since they can't find the 5 percent in the short-term CDs any more." That will drive investors toward business development companies and leveraged municipal closed-end funds, the latter benefitting from a reduced cost of leverage in a declining rate environment, as rates drive down. Mahn talks about using unit investment trusts -- and specifically covers his firms UITs that invest in BDCs and closed-end funds -- in current conditions, and talks about how the UIT structure can be a benefit for investors now.