Monthly Archives: November 2015
Compelling Value in Today’s High Yield Market
Be it the nearly 5% decline in corporate profits year over year that we saw in the third quarter or the flat retail sales over the past three months domestically, or the GDP slowing and declines we are seeing worldwide, …
Duration-based Investing in the High Yield Market
With all of the talk of the Federal Reserve taking action and raising rates in the coming month, focus has turned once again toward duration. Duration is a measure of interest rate sensitivity (the percentage change in the price of …
Looking for Price Discounts in the High Yield Market
Our investment strategy focuses on generating what we believe to be an attractive yield relative to the risk being assumed. We view risk as the risk of default and/or loss. Yield can come from bonds with high coupon rates priced …
High Yield Bonds and Interest Rates: Timing Irrelevant
After Friday’s strong jobs report, it’s looking like the Fed might finally have some data to justify in their minds making their first interest rate increase. With that, the December rate hike is starting to look more and more likely. …
Assessing Default Risk, Yields Matter
The most important risk to consider when investing in the high yield market is the risk of default. While there may be price volatility along the way, as we are currently seeing the space, bonds have a stated maturity and …