Ventura Flags High-Yield Bond Risks: Prioritize Safety and Liquidity

• Ventura's Monthly MF Pointer for January 2026 advises prioritizing safety and liquidity over returns in debt allocations.
• The report highlights a '12% illusion' where high yields often signal elevated credit or liquidity risks, not assured returns.
• Higher yields from smaller institutions compared to established issuers indicate greater uncertainty and risk.
• Terms like 'listed' or 'secured' don't guarantee liquidity or quick recovery; secondary markets can be illiquid, and legal enforcement prolonged.
• Debt instruments should provide portfolio stability and capital preservation, not outsized returns; consider post-tax and post-inflation returns.