Higher Inflation, Hawkish Fed Push Rates Higher: Q3 2026 Strategic Income Webinar

In this replay, the team discusses why Q3 was a period of transition in the bond markets, including higher rates, shifting Fed policy, and elevated AI debt issuance. In our Q3 2026 Strategic Income Webinar, the team discusses the evolving fixed income landscape and examines the implications for investors. Below is a partial list of the topics they cover: • The challenges of a more hawkish, less communicative Fed • The drivers of higher rates, including the Iran war and record Federal borrowing • The underappreciated risks of AI debt • The implications of weaker correlation between high yield bonds and equities • Why the current environment is creating good potential buying opportunities Following the panel discussion, the team hosts a lively audience Q&A session, where they discuss their portfolio positioning, the pros/cons of floating-rate loans, and the growth of the high yield market. They also explain why they prefer investing in high yield and convertible bonds versus investment grade. #FixedIncome #BondInvesting #StrategicIncome #OSTIX #Investing #HighYield #Fed #AI #OsterweisCapitalManagement 00:00 Intro & Overview of Q3 Fixed Income Market Changes 02:17 Fed Leadership & Drivers of higher interest rates 05:47 Impact of AI on Fixed Income 10:36 Correlation Between High Yield Bonds and Equities 12:59 Opportunities in a Higher Yield Environment 15:21 Portfolio Positioning and Strategy 24:41 Navigating Credit Selection for Risk Management 34:00 Understanding Bank Loans and High Yield Market Trends Consumer Price Index (CPI) reflects the weighted average of prices of a basket of consumer goods and services, such as transportation, food, and medical care. There is typically a one-month lag in the measure due to the release schedule from the U.S. Bureau of Labor Statistics. Spread is the difference in yield between a risk-free asset such as a Treasury bond and another security with the same maturity but of lesser quality. A real estate investment trust (REIT) is a publicly traded company that owns, operates or finances income-producing properties. Osterweis Capital Management is the adviser to the Osterweis Funds, which are distributed by Quasar Distributors, LLC. [OCMI-1020190-2026-10-15] Opinions expressed are subject to change at any time, are not guaranteed, and should not be considered investment advice. References to specific companies, market sectors, or investment themes herein do not constitute recommendations to buy or sell any particular securities. Holdings are subject to change and are not a recommendation to buy or sell any security. Current and future holdings are subject to risk. To obtain fund holdings visit www.osterweis.com. Connect with Osterweis for additional insights: Website: https://www.osterweis.com/ YouTube:    / @osterweiscapital   LinkedIn:   / osterweis-capital-management   For Terms & Conditions, visit the following link: https://www.osterweis.com/terms View our glossary of disclosures and definitions here: https://www.osterweis.com/glossary