In his 40-year career as a bond investor, Scott Colbert seldom felt the need to take a defensive stance. He said he is now one of them. As corporate debt became expensive and there was little room for fault tolerance, he had reduced his credit exposure to the lowest level since 2012. Colbert has increased his holdings of US Treasury bonds, government agency debt, and cash to the highest level since 2005 because he believes there aren't many opportunities in the market, and the risks he has taken have the lowest return. The shift to high-quality assets has raised the average credit rating of the portfolio from A+ to AA-. Colbert said he is not betting on a recession but is managing risk.

In his 40-year career as a bond investor, Scott Colbert seldom felt the need to take a defensive stance. He said he is now one of them. As corporate debt became expensive and there was little room for fault tolerance, he had reduced his credit exposure to the lowest level since 2012. Colbert has increased his holdings of US Treasury bonds, government agency debt, and cash to the highest level since 2005 because he believes there aren't many opportunities in the market, and the risks he has taken have the lowest return. The shift to high-quality assets has raised the average credit rating of the portfolio from A+ to AA-. Colbert said he is not betting on a recession but is managing risk.