Author Archives: Heather Rupp

Volatility and “Risk”

Volatility has seemed to be the trend in markets over the past couple months.  It was just a few weeks ago that we saw equity markets getting crushed, only to roar back and actually finish up for the month of …

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Investing by Duration

It was hard to ignore the call in the fixed income space for “short duration” investing over the last couple years. Duration is a measure of interest rate sensitivity (the percentage change in the price of a bond for a …

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Revisiting “Hedged” High Yield

We have written in the past about some of the concerns we had the with “hedged high yield” strategy (see our blog), whereby investors go long high yield bonds and short Treasuries (or Treasury futures).   As we noted in our …

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A Look at Concerns Impacting the High Yield Market

Be it interest rate concerns or talk of a bond bubble, the high yield market has faced a step back over the past couple weeks. We’ve addressed the interest rate concerns at length—see our piece “Strategies for Investing in a …

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Duration-Based Investing: Yield Matters

It would be hard to have missed the call in the fixed income space for “short duration” products over the last year.  Duration is a measure of interest rate sensitivity (the percentage change in the price of a bond for …

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Is This Time Different? A Look at Duration

As we have written about, historically speaking the high yield bond market has performed well during periods of rising rates (see our piece, “Strategies for Investing in a Rising Rate Environment”), due to the fact that the high yield market …

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Size Constraints and Price Action in the High Yield Market

Over the past several years we have seen a shift in high yield bond trading as exchange traded funds (ETFs) have grown to be a prominent force within the high yield market.  While ETFs still represent a relatively small portion …

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High Yield in a Rising Rate Environment: A Perspective on Historical Performance

We spoke last week about some of the reasons high yield bonds have historically performed well in rising rate environments, including the following: Higher coupons and yields in the high yield space help cushion the impact of rising interest rates. …

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High Yield Bonds and Interest Rates

Over the last month, we have seen the equity markets hit all-time highs, all the while bond investors seem to be indicating there are reasons to be concerned, sending the 10-year Treasury to the lowest yields seen over the past …

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Strategies for Investing in a Rising Rate Environment

We ended 2013 with virtually everyone (except us) expecting rates to rise in the year ahead as the long awaited “taper” began. Well, so far in 2014 we certainly have not seen any rate pressure materialize as the Fed slowly …

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