Author Archives: Heather Rupp

Recent High Yield Dynamics

We have seen various market dynamics impact the high yield bond market and some selling pressure ensue over the past couple weeks; however, at the end of the day, we do not see that the opportunity in the high yield …

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High Yield 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 prove otherwise.  Looking …

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A Perspective on High Yield Spreads

There have been recent headlines about yields in the high-yield market hitting all-time lows.  Yes, this is true, but let’s put this in some context.  First, interest rates have been at or near all-time lows for years, pressuring yields in …

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The True Opportunity in Today’s High Yield Market

There has been recent talk about the yield of the high yield market, as represented by the various indexes, and if there is return left to be had.  While the high yield indexes are representative of the high yield “market,” …

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Hedged High Yield

A strategy that we have seen emerge over the past year within the high yield market has been “hedged high yield,” most recently with iShares rolling out an product last month that uses their passive, index-based HYG fund as the …

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The Coming Opportunity in Floating Rate Loans

The clamor at the end of 2013 by most was that interest rates were going to rise in 2014.  As we are now closing in on the first half of the year, we have seen this widely held expectation come …

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Where to From Here?

We are seeing the Dow and S&P 500 in record territory over the past week.  Is there more room to run?  It seems hard to make the case, especially given some of the economic stumbles over the last several months …

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Managing Risk is About Avoidance

We have talked at length about TXU/Energy Future Holdings over the past several years and this past week, it declared bankruptcy.  This was certainly no surprise; the writing on the wall for this company’s ultimate bankruptcy had been there for …

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The New Case for High Yield Investing

We have updated our white paper, “The New Case for High Yield Investing:  A Guide to Understanding and Investing in the High Yield Market.”  Throughout its 30+ year history, the high yield market has often been viewed as a confusing …

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The Default Outlook

On April 1st, TXU/Energy Future Holdings skipped their interest payment due that day, immediately triggering a default by some reporting mechanisms. While the company has a 30 day grace period to pay the coupon payment, most expect them to use …

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