By Gershon Distenfeld
Years from now, we may recall 2016 as the year when political risk became a constant presence hovering over the investment landscape. But fear not: there are ways for investors who rely on fickle global credit markets for income to turn the turbulence to their advantage.
Investors have always had to account for some degree of political risk. But this year has been notable, both for the steady stream of political uncertainty and its most common source - developed Western economies. From Brexit to the US presidential election and beyond, voters and politicians frustrated with slow growth are turning inward, becoming more protectionist in their economics and xenophobic in their politics.
This has increased market volatility. But here's the thing: volatility and slow growth aren't bad things for credit markets or income investors. The former provides opportunities to uncover value, while the latter keeps interest rates low.…