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 …

As we wrote earlier this year in our piece “Pricing Risk and Playing Defense,” we are not believers in a significantly higher interest rate environment.  The global economy is simply too weak to tolerate higher rates.  The Fed will raise …

Every investment opportunity set (asset classes and individual securities) has risk.  The key is to identify the risk and “price” it correctly.  For us, assessing and pricing risk involves analyzing credit spreads in light of their expected default rates.  This …

The consensus is that rates will be going up, but the consensus has been wrong about rates time and again over the past several years—none of us know the future.  What we do know is that the two monsters of …