Author Archives: Heather Rupp

High Yield in a Rising Rate Environment

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High Yield Bond Investing: The Opportunity in Volatility

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Interest Rates and Bonds

So at long last we know whether the word “patient” stays or goes: it’s gone and Treasury yields have actually declined as a result. So far this year we have seen rates go from a 2015 low of 1.19% on …

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The State of Global Energy Markets

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The High Yield Default Outlook

We see default risk as the most prominent risk for credit investors.  As we look forward, a benign default environment is projected over the next few years.1 Broadly speaking, this projection does make sense to us.  Some of the triggers …

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Today’s Floating Rate Loan Market

Together the high yield bond and floating rate bank loan market total over $3 trillion.1 This has evolved into a significant, and growing asset class. With high yield bonds and loans now representing about 30% of corporate credit2, this market …

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High Yield in a Rising Rate Environment: Duration and Yield

We began February with a yield on the 10-year Treasury of 1.68% and today sit at 2.14%.1 All the concerns and talk of maybe even no rate rise this year that we saw in January, have turned to frequent mention …

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Alpha Generation for Active Managers

As we discussed in our recent blog (see “The Opportunity in Volatility”), we are currently seeing a lot of attractive opportunities in the high yield market—discounts and yields that we haven’t seen in some time.  And while we have seen …

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The Opportunity in Volatility

It seems the best way to sum up on the markets of late is with the word “volatile.”  We’ve seen surprise moves on the currency and interest rate front from the likes of Switzerland and Canada and the launch of …

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High Yield Bonds versus Equities

Investors are often led down the path that they must invest in equities in order to generate a decent return, and that the high yield market is too risky and speculative.  However, reality and the data points suggest otherwise.  Looking …

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