Author Archives: Heather Rupp

Floating Rate Loans: Inflows, Issuance, and Income

The floating rate bank loan market has been a popular area for investment post the election.  We have seen inflows into the space in 37 of the last 38 weeks, with $30bn coming into the retail loan funds (mutual funds …

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Return, Risk, and Diversification

When assessing a portfolio and determining their asset class mix, investors often allocate large portion to equities as this is believed to have a much better longer-term investment return profile than fixed income securities (bonds, loans), while fixed income is …

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Is Retail the Next Energy?

With weak same store sales and countless store closures announced over the first quarter, retail has been in the spotlight as an area of mounting weakness.  So far this year we have seen bankruptcies from Payless Shoes, H.H.Gregg, Eastern Outfitters, …

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A Look at Valuations: Corporate Bonds and Equities

We often look at valuations in the high yield market by analyzing the spread over a risk free rate, which is generally a comparable maturity Treasury bond.  Here’s a look at where we have been historically versus where we are …

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Spreads, Oil, and Finding Value in the High Yield Bond Market

We have seen a huge rally in high yield over the last year.  As the high yield market was positioned a year ago, oil was just bouncing of its lows in the $20s, contagion from the energy sector (given energy …

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High Yield in a Rising Rate Environment

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Investment Options in Corporate Debt

Fixed income is an important component of a balanced portfolio.  The problem many investors and advisors face today is where do you find yield in this environment and what happens to your fixed income exposures should rates rise?  Where can …

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Managing Volatility

As we have talked with advisors and investors over the past couple years, we often hear the topics of yield and volatility mentioned.  Investors are looking for yield and income generation, especially in the persistently low yield environment we’ve seen …

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High Yield Bonds for Income and Total Return Potential

Asset allocation is a delicate balance for any investor, but it has been complicated by certain factors within the current financial environment, including high equity valuations, the potential for higher interest rates, and the need for some yield in a …

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High Yield Market: Upcoming Maturities

One thing we look at as a high yield bond investor is the amount of upcoming maturities, as it can be important as we think about both defaults and the supply of new bonds.  Below are the amount of upcoming …

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