Author Archives: Heather Rupp

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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Expanding the Opportunity Set for Income Generation

High Yield investors should understand the difference between an index-based product and its yield generation characteristics and portfolio composition based on the underlying index, versus some of the expanded opportunities available to active managers.  For instance in the high yield …

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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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