Jim Cramer talks floating rate assets with fixed-income expert Peter Tchir, who gives his recommendations on what to buy.
"...because leveraged loans can be a very difficult product to buy individually, these are often traded at a premium to net asset value (NAV - Get Report) for that market access and good markets. You've got a floating rate protection, you've got exposure to the high yield market - so you're getting that decent amount of income without that rate risk..."
Tchir currently serves as managing director of macro income strategy at Brean Capital LLC. He started his career at Bankers Trust and later at Deutsche Bank running high-yield derivatives. Tchir has traded all manner of fixed-income products, both on the sell side as a market maker and as a portfolio manager at a fixed-income hedge fund. During the financial crisis, he ran the U.S. CDS-index business (made famous by The Big Short) for RBS.