Author Archives: Heather Rupp

Floating Rate Bank Loans: Rising Rates, Re-pricings, and the Real Income

Investing in floating rate bank loans has been a popular strategy this year given investor’s concern about higher rates.  We have seen positive fund flows into floating rate loan mutual and exchange traded funds in 15 of the last 16 …

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What History Tells Us About Investing in High Yield Bonds in the Face of Rising Rates

Looking at where we were just a year ago, we have seen a notable move upward in US Treasury yields, with the 2-year yield going from 1.29% at the at the end of April 2017 and nearly doubling to the …

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Opportunities for Active Management in the High Yield Debt Market

Equity market volatility has re-emerged so far in 2018.  However, in the midst of this, the high yield market has held in fairly well.  We are seeing more attention being paid to credit fundamentals, which we would certainly embrace as …

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The New Case for High Yield: A Guide to Understanding and Investing in the High Yield Market

Throughout its history spanning over three decades, the high yield market has often been viewed as a confusing or an alternative asset class.  However, the reality is that this is a large, developed and liquid asset class.  We have provided …

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Volatility: High Yield Bonds versus Equities

Volatility has once again returned to financial markets over the last couple months, most visibly with wild equity price movements that we saw in February and again over the last week. While the high yield bond market certainly has not …

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Credit Risk versus Interest Rate Risk

As we brace for another FOMC meeting and an expected rise in the Federal Funds Rate, we continue to hear investors express concerns about how the high yield market will fare in the face of rising rates.  Looking back over …

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Strategies for Investing in a Rising Rate Environment

Accurately calling interest rate moves has proved to be a difficult, and futile, task for investors over the past several years as we have seen wild moves and really no sustained direction.  While the only aspect of rates that can …

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The High Yield Market Outlook

As we start the new year, much of the focus has been on interest rates.  We’ve seen the Fed moving up the Fed Funds rate up for the last two years, all the while the 10-year Treasury yield hit the …

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The Return of Volatility

Today, people are left trying to make sense of yesterday’s wild ride in the equity market in the hour before the market close, followed by the quick move down (even into “correction” territory on the Dow) and subsequent reversal this …

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High Yield in a Rising Rate Environment

The widely held expectation is that the Fed will raise rates at least three times again this year.  The question becomes what does this mean for fixed income markets? Investors often seem to be under the notion that anything “bond” …

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