Author Archives: Heather Rupp

History Lesson: The Performance of Various Asset Classes During Periods of Rising Rates

As a high yield manager, we have recently heard a number of people saying (we believe incorrectly) that our market is set up for doom if rates rise.  Rather, history would indicate quite the contrary.  Looking back to 1980, we …

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No Massive Rate Move on the Horizon

Markets remain laser focused on the Fed and rates, but should investors be so concerned?  Is a big increase coming?  In her press conference last week, Yellen didn’t seem to impart great confidence in the strength of the economy, consumer …

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High Yield Bonds and Interest Rates: History Does NOT Indicate Doom is on the Horizon

As investors assess their interest rate sensitivity for fixed income holdings, they often turn to the duration calculation, a measure of the sensitivity of the price of a fixed-income security to a change in interest rates. Per this hypothetical calculation, …

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High Yield in a Rising Rate Environment: Yield, Duration, Correlation, and Economic Factors

With the move we have seen in interest rates (Treasury rates) over the past month and the concerns that this move up will continue, let’s look at the high yield market and how it has traditionally responded to rate moves. …

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High Yield Bonds: Rates and Returns

With a number of data points over the past month, including Friday’s better than expected jobs report, pushing the expectations for a September rate hike higher, concerns about the impact of interest rates on various asset classes is heating up.  …

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Active Management: Selectivity and Flexibility

We are often asked where we are able to find yield in the high yield market, as we consistently target generating a yield that is higher than what can be provided by some broader high yield bond market indexes and …

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Energy Markets: There Will be Winners and Losers

We are ardent believers that the recent decline in the price of oil is temporary given continued demand growth (which will likely only accelerate at lower prices) and our expectation that worldwide supply will decline at current prices; in short, …

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Time to Go Active

Earlier this week we saw one of the major financial publications feature an article about how active management has outperformed passive management so far in 2015. While their article and data focused on equity funds, we believe that the same …

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Rates and Returns, 2013 versus 2015

Given the recent move in Treasury yields, with the 10-year U.S. Treasury yield up over 30bps in just the last 30 days, the concern about interest rate risk is heating up again.  As we have written about in the past, …

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A Look at High Yield Bond and Equity Valuations

There has been talk in the media recently about high yield being overvalued at current levels. However, we feel that historical metrics indicate that we are nowhere near a point of overvaluation; rather, there is still value to be had …

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