Author Archives: Heather Rupp

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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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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