PH&N High Yield Bond Fund Update and Outlook

Size: px
Start display at page:

Download "PH&N High Yield Bond Fund Update and Outlook"

Transcription

1 PH&N Advisor conference call PH&N High Yield Bond Fund Update and Outlook June 16, 2009 Presentation ti by: Hanif Mamdani, Head of Alternative Investments Lead Manager, PH&N High Yield Bond Fund 1

2 Credit Market Overview This is a fundamentally different type of cycle than 1990 and 2002 banking crisis on top of a recession massive deleveraging global scope of problems Financial crisis in 2008 economic crisis in 2009 Yet there are some positives unprecedented policy response valuations are cheap (although h not as cheap as March 09) evidence of thawing in credit markets Over time, historically cheap valuations will win the day but recovery could be choppy and returns will vary across markets That said, it does appear that high yield has turned the corner for this cycle 2

3 Corporate Bond Performance versus Gov't of Canada's* Annual Performance Comparisons 14.0% 9.0% tial Return Differen 4.0% -1.0% -6.0% 60% -11.0% -16.0% Dec-84 Dec-86 Dec-88 Dec-90 * DEX Mid-term Bond Index Dec-92 Dec-94 Dec-96 Dec-98 Dec-00 Dec-02 Dec-04 Dec-06 Dec-08 Source: credit\mid can v (Dec31 1 yr) 5/31/08 Y-T-D as at May-09 3

4 BAA Corporate Bond Yields Minus 10-Year Treasury Bond Yields bps Source: credit\baa corporate spreads

5 Current Credit Crisis Longer and More Pronounced Than Past Episodes for Canadian Financials 450 Royal Bank of Canada 5-year Sub-debt Spreads Spre ead (basis poin nts) bps 50 0 Dec-97 Dec-98 4 mths 7 mths Dec-99 Dec-00 Dec-01 Dec-02 Dec-03 Dec-04 Dec-05 Dec-06 Dec-07 Dec-08 Dec mths Source: credit\royalbank 6/5/09 5

6 Timing Entry into the U.S. High Yield Market Can HY Spreads Peak this Early in Default Cycle? HY Spreads U.S. HY Default Rate 1040 bps 9.2% Default Rate / Yield Spread Dec-88 Dec-90 Dec-92 Dec-94 Dec-96 Dec-98 Dec-00 Dec-02 Dec-04 Dec-06 Dec-08 Dec-10 6

7 High Yield Market Yields 13% But Averages Can Be Deceptive Non-distressed Market % of Outstandin ng Distressed Market Price Buckets Examples of Distressed Names Traditional High Yield Names Claire s Stores 10.5% due Clear Channel 10.75% due ArvinMeritor 8.125% due Freescale Semiconductor % due K. Hovnonian Homes 6.375% due NewPage 12% due Hawker Beechcraft 9.75% due Verso Paper % due Harrah s 5.75% due Price Yield Price Yield ($) (%) ARAMARK 8.5% due 2015 ($) 97 (%) 9.1 AES Corp 7.75% due Cablevision 7.875% due Chesapeake 6.875% due Community Health 8.875% due DirecTV 6.375% due El Paso 6.875% due Host Hotels 7.125% due Starwood Hotels 6.75% due

8 PH&N s Approach to High Yield Bonds Middle of the credit spectrum provides best risk-adjusted returns over time Take advantage of anomalies around investment-grade/high-yield border PH&N HYBF will hold up well during bear markets but will lag peers in bull markets Over a cycle, we believe this approach wins the day 8

9 PH&N Industry and Security Selection Process 9

10 PH&N High Yield Bond Fund Portfolio Structure as of May 31, 2009 Rating Distribution Industry Distribution BB & Below 6.6% Unrated 17.2% AAA 10.5% AA 4.2% A 14.8% Cable 7.6% Telecom 11.0% Cash 10.5% Banks 8.9% Industrials 4.4% Media 7.8% BBB 46.7% Retailing 16.1% Real Estate/CMBS 16.1% Non Bank Financial 17.6% Maturity Distribution >10 Yrs 20.9% <1 Yr 14.2% Portfolio Duration: Average Term to Maturity: 4.54 yrs 7.92 yrs 5-10 Yrs 28.2% 1-5 Yrs 36.7% Pre-Fee Portfolio Yield: 6.39% DEX Universe Index Yield: 3.52% Incremental 2.87% 10

11 PH&N High Yield Bond Fund A Peek at the Portfolio Issue Jan 2009 Yield* June 2009 Yield** Change in Yield Loblaws % 6.93% -188 bp Morgan Stanley % 5.46% -317 bp Sobeys % 7.20% -209 bp Bell % 7.05% -222 bp Bell Alliant % 6.71% -115 bp Suncor % 5.45% -153 bp Yellow Pages % 8.96% -3 bp *As of January 12, 2009 **As of June 11, 2009 Most large positions have performed very well and currently provide a more modest (but arguably still attractive) yield for the risk undertaken 11

12 PH&N High Yield Bond Fund Performance as of May 31, 2009 Annualized Returns to 1 Yr 2 Yrs 3 Yrs 5 Yrs 8 Yrs 2008 May 31, 2009 (Series D) (%) (%) (%) (%) (%) MER (%) PH&N High Yield Bond Fund F DEX High Yield Index C ML Canadian HY Index DEX Universe Bond Index Annual Returns for Periods Ending May 31 (%) (%) (%) (%) (%) PH&N High Yield Bond Fund DEX High Yield Index ML Global HY Index DEX Universe Bond Index

13 Cumulative Growth of $100 since HYBF Inception $200 $175 HYBF ML Global High Yield Canadian Issuers Index DEX Universe $150 $125 $100 $75 Ju ul-00 Ju ul-01 Ju ul-02 Ju ul-03 Ju ul-04 Ju ul-05 Ju ul-06 Ju ul-07 Ju ul-08 *HYBF returns are net-of-fees **ML Global High Yield Canadian Issuers Index is 100% Cdn$ hedged 13

14 Concluding Remarks Investment-grade credit remains more attractive than high-yield on a risk-adjusted basis High-yield default cycle has yet to peak, but prices may have bottomed already Recoveries will be much lower than past cycles absence of DIPfi financingi problematic capital structures (e.g. top heavy, covenant light, Paid-in-Kind Debentures (PIKS)) so security selection is critical Despite precedents from previous cycles, high-yield spreads may have peaked 4-6 quarters ahead of peak defaults (very unusual) There may be another attractive entry point into high h yield if the economy falters or experiences a double-dip In the interim, better to wait in mid-quality corporates and collect favourable carry in our view 14

15 Fund/Contact Information Series Options: Fund Code MER Trailer F Series PHN % n/a C Series PHN % 0.50% RBC Regional Sales Manager Contact Info: Toll Free:

16 Required Disclosures This report and the information contained herein have been provided by Phillips, Hager & North Investment Management Ltd. (PH&N). PH&N has taken reasonable steps to provide current, accurate and reliable information, and believes the information to be so at publication time. This article is for information purposes only, and is not intended to provide legal, accounting, tax, investment, financial or other advice. Due to the possibility of human and/or mechanical error as well as other factors, including but not limited to technical or other inaccuracies or typographical errors or omissions, PH&N is not responsible for any errors or omissions contained herein. PH&N reserves the right at any time and without notice to change, amend or cease publication of the information. Any investment and economic outlook information contained in this report has been compiled by PH&N from various third party sources. Information obtained from third parties is believed to be reliable, but no representation or warranty, express or implied, is made by PH&N, its affiliates or any other person as to its accuracy, completeness or correctness. PH&N and its affiliates assume no responsibility for any errors or omissions. Copyright This report may not be reproduced, distributed or published without the written consent of PH&N. Commissions, trailing commissions, management fees and expenses all may be associated with mutual fund investments. Please read the prospectus bf before investing. Mutual funds are not guaranteed or insured, and their values may change frequently. Past performance may not be repeated. Phillips, Hager & North ( PH&N ) is a registered trade name for Phillips, Hager & North Investment Management Ltd. ( PH&NIM ) and its wholly owned subsidiary Phillips, Hager & North Investment Funds Ltd. ( PH&NIF ). PH&NIM is the fund manager and principal portfolio adviser for all PH&N investment funds. PH&NIF is the principal distributor of the units of the PH&N funds. 16

High Yield Municipal Bond Outlook

High Yield Municipal Bond Outlook INSIGHTS High Yield Municipal Bond Outlook 203.621.1700 2014, Rocaton Investment Advisors, LLC EXECUTIVE SUMMARY Uncertainty surrounding Federal Reserve interest rate policies and negative municipal headlines

More information

Fixed-income opportunity: Short duration high yield

Fixed-income opportunity: Short duration high yield March 2014 Insights from: An income solution for a low or rising interest-rate environment Generating income is a key objective for many investors, and one that is increasingly difficult to achieve in

More information

The Fixed Income Conundrum What s your next move?

The Fixed Income Conundrum What s your next move? What s your next move? For some time, low yields have been a reality in the bond market, leading many investors to hail a new normal that is both persistent and uncharted. Government bond yields in North

More information

Why high-yield municipal bonds may be attractive in today s market environment

Why high-yield municipal bonds may be attractive in today s market environment Spread Why high-yield municipal bonds may be attractive in today s market environment February 2014 High-yield municipal bonds may be attractive given their: Historically wide spreads Attractive prices

More information

Global high yield: We believe it s still offering value December 2013

Global high yield: We believe it s still offering value December 2013 Global high yield: We believe it s still offering value December 2013 02 of 08 Global high yield: we believe it s still offering value Patrick Maldari, CFA Senior Portfolio Manager North American Fixed

More information

Update Presentation with Larry Holzenthaler. January 2016

Update Presentation with Larry Holzenthaler. January 2016 Update Presentation with Larry Holzenthaler January 2016 Reminder Loans Have First Priority Loans have priority over Bonds, Preferred Shares, Common Equity Most senior tranche of the capital structure

More information

Yukon Wealth Management, Inc.

Yukon Wealth Management, Inc. This summary reflects our views as of 12/15/08. Merrill Lynch High Yield Master Index effective yield at 23%. Asset Class Review: High-Yield Bonds Executive Summary High-yield bonds have had a terrible

More information

Wells Fargo Advantage High Yield Bond Fund

Wells Fargo Advantage High Yield Bond Fund All information is as of 9-30-15 unless otherwise indicated. General fund information Ticker: EKHIX Portfolio managers: Margaret D. Patel Subadvisor: Wells Capital Management, Inc. Category: High-yield

More information

Invesco s Senior Loan Platform. May 2012. Scott Baskind Senior Portfolio Manager 0000000. Presented by:

Invesco s Senior Loan Platform. May 2012. Scott Baskind Senior Portfolio Manager 0000000. Presented by: Invesco s Senior Loan Platform May 2012 Presented by: Scott Baskind Senior Portfolio Manager 0000000 Bank Loans are Trading Cheap to Historic Levels % Par Average Bank Loan Bid Source: Standard & Poor

More information

Guggenheim Investments. European High-Yield and Bank Loan Market Overview

Guggenheim Investments. European High-Yield and Bank Loan Market Overview Guggenheim Investments European High-Yield and Bank Loan Market Overview August 2015 European High-Yield & Bank Loan Market Overview Please see disclosures and legal notice at end of document. 2 August

More information

A case for high-yield bonds

A case for high-yield bonds By: Yoshie Phillips, CFA, Senior Research Analyst MAY 212 A case for high-yield bonds High-yield bonds have historically produced strong returns relative to those of other major asset classes, including

More information

A case for high-yield bonds

A case for high-yield bonds By: Yoshie Phillips, CFA, Senior Research Analyst AUGUST 212 A case for high-yield bonds High-yield bonds have historically produced strong returns relative to those of other major asset classes, including

More information

Nasdaq Then and Now ECONOMIC RESEARCH. Robert Kavcic, Senior Economist April 24, 2015. Market Performance as of April 24, 2015

Nasdaq Then and Now ECONOMIC RESEARCH. Robert Kavcic, Senior Economist April 24, 2015. Market Performance as of April 24, 2015 Robert Kavcic, Senior Economist April 24, 2015 Nasdaq Then and Now Equity markets rallied this week alongside some better-than-expected technology-sector earnings and a sparse economic calendar. The S&P

More information

Wells Fargo Advantage High Yield Bond Fund

Wells Fargo Advantage High Yield Bond Fund All information is as of 6-30-15 unless otherwise indicated. General fund information Ticker: EKHYX Portfolio managers: Margaret D. Patel Subadvisor: Wells Capital Management, Inc. Category: High-yield

More information

Chapter 12. Page 1. Bonds: Analysis and Strategy. Learning Objectives. INVESTMENTS: Analysis and Management Second Canadian Edition

Chapter 12. Page 1. Bonds: Analysis and Strategy. Learning Objectives. INVESTMENTS: Analysis and Management Second Canadian Edition INVESTMENTS: Analysis and Management Second Canadian Edition W. Sean Cleary Charles P. Jones Chapter 12 Bonds: Analysis and Strategy Learning Objectives Explain why investors buy bonds. Discuss major considerations

More information

Sankaty Advisors, LLC

Sankaty Advisors, LLC Leveraged Loans: A Primer December 2012 In today s market environment of low rates and slow growth, we believe that leveraged loans offer a unique diversification option for fixed income portfolios due

More information

Opportunities in credit higher quality high-yield bonds

Opportunities in credit higher quality high-yield bonds Highlights > > Default rates below the long-term average > > Valuations wide of historical average in BB and B rated credit > > Despite sluggish economy, high yield can still perform well > > High yield

More information

FTIF Templeton Global Bond Fund

FTIF Templeton Global Bond Fund FTIF Templeton Global Bond Fund The STRATEGY Investment Goal FTIF Templeton Global Bond Fund seeks to maximize total return, with a combination of interest income, capital appreciation and currency gains

More information

STANTON ASSET MANAGEMENT

STANTON ASSET MANAGEMENT STANTON ASSET MANAGEMENT CORPORATE FIXED INCOME MARKET MONITOR First Quarter 215 Canadian Corporate Bonds First Quarter 215 Data as of March 31, 215 Market Data (Avg.) Size Performance Spread DuraIon Yield

More information

Why Consider Bank Loan Investing?

Why Consider Bank Loan Investing? Why Consider Bank Loan Investing? September 2012 Bank loans continue to increase in popularity among a variety of investors in search of higher yield potential than other types of bonds, with lower relative

More information

Madison Investment Advisors LLC

Madison Investment Advisors LLC Madison Investment Advisors LLC Intermediate Fixed Income SELECT ROSTER Firm Information: Location: Year Founded: Total Employees: Assets ($mil): Accounts: Key Personnel: Matt Hayner, CFA Vice President

More information

JPMorgan Funds statistics report: High Yield Fund

JPMorgan Funds statistics report: High Yield Fund NOT FDIC INSURED NO BANK GUARANTEE MAY LOSE VALUE JPMorgan s statistics report: High Yield Must be preceded or accompanied by a prospectus. jpmorganfunds.com Table of contents PERFORMANCE DURATION Performance

More information

The Search for Yield Continues: A Re-introduction to Bank Loans

The Search for Yield Continues: A Re-introduction to Bank Loans INSIGHTS The Search for Yield Continues: A Re-introduction to Bank Loans 203.621.1700 2013, Rocaton Investment Advisors, LLC Executive Summary With the Federal Reserve pledging to stick to its zero interest-rate

More information

The Case for Investing in High Yield Bonds.

The Case for Investing in High Yield Bonds. The Case for Investing in High Yield Bonds. High-yield bonds represent an effective tool for increasing long-term returns and reducing volatility in the fixed income portion of investors portfolios. In

More information

Navigator Fixed Income Total Return

Navigator Fixed Income Total Return CCM-15-12-1 As of 12/31/2015 Navigator Fixed Income Navigate Fixed Income with a Tactical Approach With yields hovering at historic lows, bond portfolios could decline if interest rates rise. But income

More information

Time to Invest in Short-Term Bonds?

Time to Invest in Short-Term Bonds? First Quarter 2010 Time to Invest in Short-Term Bonds? Executive Summary This paper outlines why now may be an opportune time to invest in short-term bonds. We believe short-term bonds offer: Less downside

More information

09/03/2015. The Changing Landscape of The Global High Yield Market. What makes the High Yield Market So Appealing

09/03/2015. The Changing Landscape of The Global High Yield Market. What makes the High Yield Market So Appealing 9/3/21 For professional use only Not for Public distribution The Changing Landscape of The Global High Yield Market March 21 Texas Association of Public Employee Retirement Systems (TEXPERS) Patrick Maldari,

More information

Update on Mutual Company Dividend Interest Rates for 2013

Update on Mutual Company Dividend Interest Rates for 2013 Update on Mutual Company Dividend Interest Rates for 2013 1100 Kenilworth Ave., Suite 110 Charlotte, NC 28204 704.333.0508 704.333.0510 Fax www.bejs.com Prepared and Researched by June 2013 Near the end

More information

Corporate Bonds: Check Out These Curves!

Corporate Bonds: Check Out These Curves! Corporate Bonds: Check Out These Curves! It s widely believed that the U.S. economy is the bus driver and we are all along for the ride when it comes to determining the future of interest rates. The U.S.

More information

M INTELLIGENCE. Dividend Interest Rates for 2015. Dividend Interest Rate. July 2015. Life insurance due. care requires an

M INTELLIGENCE. Dividend Interest Rates for 2015. Dividend Interest Rate. July 2015. Life insurance due. care requires an M INTELLIGENCE July 2015 Life insurance due care requires an understanding of the factors that impact policy performance and drive product selection. M Financial Group continues to lead the industry in

More information

Scotia Private High Yield Income Pool

Scotia Private High Yield Income Pool Scotia Private High Yield Income Pool (formerly Pinnacle High Yield Income Fund) Annual Management Report of Fund Performance For the period ended December 31, 2011 AM 215 E This annual management report

More information

The case for high yield

The case for high yield The case for high yield Jennifer Ponce de Leon, Vice President, Senior Sector Leader Wendy Price, Director, Institutional Product Management We believe high yield is a compelling relative investment opportunity

More information

Additional series available. Morningstar TM Rating. Funds in category. Fixed income % of fixed income allocation

Additional series available. Morningstar TM Rating. Funds in category. Fixed income % of fixed income allocation Sun Life MFS Global Total Return Fund Series A $15.6659 Net asset value per security (NAVPS) as of August 05, 2016 $0.1591 1.03% Benchmark Blended benchmark Fund category Global Neutral Balanced Additional

More information

Investors Mortgage and Short Term Income Fund

Investors Mortgage and Short Term Income Fund Investors Mortgage and Short Term Income Fund Annual Management Report of Fund Performance FOR THE PERIOD ENDED MARCH, CAUTION REGARDING FORWARD-LOOKING STATEMENTS This report may contain forward-looking

More information

Equity Sell-off Continues, Bonds Affected

Equity Sell-off Continues, Bonds Affected Equity Sell-off Continues, Bonds Affected Executive Summary Portfolio Performance So Far The 1-month performance of all model portfolios have been affected by the recent sell-off in equities, with returns

More information

The Credit Analysis Process: From In-Depth Company Research to Selecting the Right Instrument

The Credit Analysis Process: From In-Depth Company Research to Selecting the Right Instrument Featured Solution May 2015 Your Global Investment Authority The Credit Analysis Process: From In-Depth Company Research to Selecting the Right Instrument In today s low yield environment, an active investment

More information

Examining Yield Strategies Through S&P Municipal Bond Indices

Examining Yield Strategies Through S&P Municipal Bond Indices Examining Yield Strategies Through S&P Municipal Bond Indices CONTRIBUTORS James J.R. Rieger Global Head Fixed Income Indices james.rieger@spdji.com Tyler Cling Senior Manager Fixed Income Indices tyler.cling@spdji.com

More information

Municipal Bond Market Weekly

Municipal Bond Market Weekly Strategy Municipal Bond Market Weekly Bottom Line: The U.S. Treasury yields rose sharply on a hawkishly-perceived interpretation of the FOMC meeting statement. Municipal yields hung on and the 10-yr AAA

More information

NEWTON GLOBAL HIGH YIELD BOND FUND

NEWTON GLOBAL HIGH YIELD BOND FUND QUARTERLY INVESTMENT REPORT PREPARED FOR PROFESSIONAL CLIENTS ONLY // AS AT 30 SEPTEMBER 2015 NEWTON GLOBAL HIGH YIELD BOND FUND PERFORMANCE DISCLOSURE Past performance is not a guide to future performance.

More information

Mawer Canadian Bond Fund. Interim Management Report of Fund Performance

Mawer Canadian Bond Fund. Interim Management Report of Fund Performance Interim Management Report of Fund Performance For the Period Ended June 30, 2015 This interim management report of fund performance contains financial highlights but does not contain either interim or

More information

Bond Market Perspectives

Bond Market Perspectives LPL FINANCIAL RESEARCH Bond Market Perspectives March 26, 2013 High-Yield Bonds and the Credit Cycle Anthony Valeri, CFA Market Strategist LPL Financial Highlights More speculative issuance has increased

More information

BERYL Credit Pulse on High Yield Corporates

BERYL Credit Pulse on High Yield Corporates BERYL Credit Pulse on High Yield Corporates This paper will summarize Beryl Consulting 2010 outlook and hedge fund portfolio construction for the high yield corporate sector in light of the events of the

More information

Additional series available. Morningstar TM Rating. Funds in category. Fixed inc style Credit quality %

Additional series available. Morningstar TM Rating. Funds in category. Fixed inc style Credit quality % Sun Life MFS Canadian Bond Fund Series A $14.5087 Net asset value per security (NAVPS) as of June 30, 2016 $0.0336 0.23% Benchmark FTSE TMX Canada Universe Bond Index Fund category Canadian Fixed Income

More information

The recent volatility of high-yield bonds: Spreads widen though fundamentals stay strong

The recent volatility of high-yield bonds: Spreads widen though fundamentals stay strong Investment Insights The recent volatility of high-yield bonds: Spreads widen though fundamentals stay strong Kevin Lorenz, CFA, Managing Director, Lead Portfolio Manager of TIAA-CREF's High-Yield Fund

More information

Signature Perspectives US Multi-Sector Fixed Income

Signature Perspectives US Multi-Sector Fixed Income Signature Perspectives US Multi-Sector Fixed Income Signature Securities Portfolios US Multi-Sector Fixed Income As of 31 March 2012 Performance Review Investment Objective Seeks growth through capital

More information

Deutsche Floating Rate Fund

Deutsche Floating Rate Fund Taxable Fixed-Income 2 nd quarter 2014 Deutsche Floating Rate Fund Access a world of opportunities through the global resources of Deutsche Bank Canada United States Netherlands Belgium United Kingdom

More information

Navigator Fixed Income Total Return

Navigator Fixed Income Total Return CCM-15-08-1 As of 8/31/2015 Navigator Fixed Income Total Return Navigate Fixed Income with a Tactical Approach With yields hovering at historic lows, bond portfolios could decline if interest rates rise.

More information

Additional series available. Morningstar TM Rating. Funds in category. Equity style Market cap %

Additional series available. Morningstar TM Rating. Funds in category. Equity style Market cap % Sun Life BlackRock Canadian Equity Fund Series A $11.7604 Net asset value per security (NAVPS) as of July 08, 2016 $0.1379 1.19% Benchmark S&P/TSX Capped Composite Index Fund category Canadian Focused

More information

Are we living in a Bond Bubble? Oliver Sinnott Fixed Income Strategist April 2014

Are we living in a Bond Bubble? Oliver Sinnott Fixed Income Strategist April 2014 Are we living in a Bond Bubble? Oliver Sinnott Fixed Income Strategist April 2014 Global Financial Crisis saw debt levels soar to highest since WWII Governments were too highly indebted to significantly

More information

KDP ASSET MANAGEMENT, INC.

KDP ASSET MANAGEMENT, INC. ASSET MANAGEMENT, INC. High Yield Bond and Senior Secured Bank Loan Outlook October 2015 Asset Management, Inc. 24 Elm Street Montpelier, Vermont 802.223.0440 HighYield@kdpam.com This is an analytical

More information

The Case for Investing in Corporate Bonds Rated Below Single A

The Case for Investing in Corporate Bonds Rated Below Single A The Case for Investing in Corporate Bonds Rated Below Single A Executive Summary Most non-life insurance companies invest in corporate bonds with a focus on securities rated single A and higher, with only

More information

Municipal Bond Market Weekly

Municipal Bond Market Weekly Fixed Income Strategy Municipal Bond Market Weekly Bottom Line: U.S Treasury yields fall for a second consecutive week on risk aversion to Brexit with lower real yields and lower inflation breakevens there

More information

Risks and Rewards in High Yield Bonds

Risks and Rewards in High Yield Bonds Risks and Rewards in High Yield Bonds Peter R. Duffy, CFA, Partner, Senior Portfolio Manager Navy Yard Corporate Center, Three Crescent Drive, Suite 400, Philadelphia, PA 19112 www.penncapital.com 1 What

More information

Documeent title on one or two. high-yield bonds. Executive summary. W Price (per $100 par) W. The diversification merits of high-yield bonds

Documeent title on one or two. high-yield bonds. Executive summary. W Price (per $100 par) W. The diversification merits of high-yield bonds April 01 TIAA-CREF Asset Management Documeent title on one or two The lines enduring Gustan case Book for pt high-yield bonds TIAA-CREF High-Yield Strategy Kevin Lorenz, CFA Managing Director Co-portfolio

More information

Introduction to Convertible Debentures

Introduction to Convertible Debentures Introduction to Convertible Debentures Intro to Convertible Debentures March, 2009 Convertible debentures are hybrid securities which offer advantages of both bonds and equities. Like ordinary bonds they

More information

Munis: Still Delivering in Tough Conditions? July 2014

Munis: Still Delivering in Tough Conditions? July 2014 Munis: Still Delivering in Tough Conditions? July 2014 Columbia Management s James Dearborn finds plenty of opportunity in munis today Over the past year, James Dearborn says, a challenging part of his

More information

High Yield Fixed Income Credit Outlook

High Yield Fixed Income Credit Outlook High Yield Fixed Income Credit Outlook Brendan White, CFA Portfolio Manager, Touchstone High Yield Fund Fort Washington Investment Advisors, Inc. September 28, 2011 The opinions expressed are current as

More information

Synovus Investment Advisors, Inc.

Synovus Investment Advisors, Inc. Synovus Investment Advisors, Inc. FIXED INCOME MANAGEMENT PROCESS Investment products and services provided by Synovus are offered through Synovus Investment Advisors, Inc., Synovus Securities, Inc., Synovus

More information

Leveraged Loan Funds: Debunking the Myths

Leveraged Loan Funds: Debunking the Myths Leveraged Loan Funds: Debunking the Myths SM Leveraged Loan Funds: Debunking the Myths Contents 2 Myth #1: Managing liquidity in actively managed leveraged loan mutual funds is difficult. 3 Myth #2: In

More information

JPMorgan Senior Secured Loan Fund Limited

JPMorgan Senior Secured Loan Fund Limited JPMorgan Senior Secured Loan Fund Limited FOR PROFESSIONAL CLIENTS ONLY OCTOBER 2013 JPMorgan Senior Secured Loan Fund Limited New closed-ended company with focus on income from a portfolio of senior secured

More information

Sprott Diversified Yield Fund

Sprott Diversified Yield Fund Sprott Diversified Yield Fund SPROTT ASSET MANAGEMENT LP ANNUAL MANAGEMENT REPORT OF FUND PERFORMANCE 2013 26JUL201212454834 The annual management report of fund performance is an analysis and explanation

More information

iprofile TM Fixed Income Pool

iprofile TM Fixed Income Pool Annual Management Report of Fund Performance FOR THE PERIOD ENDED MARCH 31, 2015 CAUTION REGARDING FORWARD-LOOKING STATEMENTS This report may contain forward-looking statements about the Pool, including

More information

INVESTING WITH DYNAMIC FIXED INCOME. Michael McHugh Vice President and Portfolio Manager Head of Fixed Income

INVESTING WITH DYNAMIC FIXED INCOME. Michael McHugh Vice President and Portfolio Manager Head of Fixed Income INVESTING WITH DYNAMIC FIXED INCOME Michael McHugh Vice President and Portfolio Manager Head of Fixed Income Overview Dynamic Fixed Income Team and Process Dynamic Fixed Income Funds 3 Dynamic Fixed Income

More information

A GUIDE TO FLOATING RATE BANK LOANS:

A GUIDE TO FLOATING RATE BANK LOANS: Contact information: Advisor Services: (631) 629-4908 E-mail: info@catalystmf.com Website: www.catalystmf.com A GUIDE TO FLOATING RATE BANK LOANS: An Attractive Investment for a Rising Interest Rate Environment

More information

The Case for Leveraged Loans

The Case for Leveraged Loans The Case for Leveraged Loans As the market grew, banks and institutional investors sought to diversify and actively manage their loan portfolios by An Attractive Source for Uncorrelated Returns increasing

More information

Fixed Income Update Portfolio Positioning

Fixed Income Update Portfolio Positioning Fixed Income Update Portfolio Positioning April 2015 In 2014, we saw traditional relationships between equity and high yield performance diverge. Despite an improving U.S. economy Treasuries rallied along

More information

Questions and Answers About Senior Secured Loans

Questions and Answers About Senior Secured Loans Revised August 2013 Senior Secured Loans Questions and Answers About Senior Secured Loans Joe Lemanowicz Managing Director and Head of U.S. Senior Secured Loan Team Pramerica Fixed Income U.S. senior secured

More information

CONVERTIBLE DEBENTURES A PRIMER

CONVERTIBLE DEBENTURES A PRIMER What are convertible debentures? CONVERTIBLE DEBENTURES A PRIMER They are hybrid securities, combining the features of a conventional debenture with the option of converting, under certain circumstances,

More information

High Yield Credit: An Evaluation for Prospective Insurance Company Investors

High Yield Credit: An Evaluation for Prospective Insurance Company Investors High Yield Credit: An Evaluation for Prospective Insurance Company Investors Low interest rates challenging traditional insurance company business model More insurance companies using high yield to mitigate

More information

Municipal Market Review

Municipal Market Review Redstone Advisors Municipal Market Review Municipal yields rallied sharply during the quarter, with most of the decline in yields occurring in March. The predominant trends acting on municipal yields during

More information

PRIVATE FIXED INCOME ASSETS: CAPTURING THE LIQUIDITY PREMIUM

PRIVATE FIXED INCOME ASSETS: CAPTURING THE LIQUIDITY PREMIUM PRIVATE FIXED INCOME ASSETS: CAPTURING THE LIQUIDITY PREMIUM EUGENE LUNDRIGAN CHIEF OPERATING OFFICER SUN LIFE INVESTMENT MANAGEMENT INC. AGENDA 1 2 3 4 5 Challenging times for pension funds Search for

More information

Capital preservation strategy update

Capital preservation strategy update Client Education Summit 2012 Capital preservation strategy update Head of Institutional Fixed Income Investments, Americas October 9, 2012 Topics for discussion 1 Capital preservation strategies 2 3 4

More information

HIGH YIELD BONDS UNDER STRESS?

HIGH YIELD BONDS UNDER STRESS? HEALTH WEALTH CAREER HIGH YIELD BONDS UNDER STRESS? DECEMBER 2015 2 WHAT PROMPTED THE MARKET DISRUPTION? News broke last week that the Third Avenue Focused Credit mutual fund suspended redemptions and

More information

The timeless (and timely) case for high-yield bonds

The timeless (and timely) case for high-yield bonds INCOME EATON VANCE Looking beyond traditional sources of yield MARCH 2016 TIMELY THINKING The timeless (and timely) case for high-yield bonds SUMMARY High-yield bonds occupy a special capital market niche:

More information

MANULIFE MUTUAL FUNDS

MANULIFE MUTUAL FUNDS MANULIFE MUTUAL FUNDS AMENDMENT NO. 2 dated March 16, 2012 to the Simplified Prospectus dated August 19, 2011, as amended by Amendment No. 1 dated March 5, 2012 (the Prospectus ): OFFERING ADVISOR SERIES,

More information

CALVERT UNCONSTRAINED BOND FUND A More Expansive Approach to Fixed-Income Investing

CALVERT UNCONSTRAINED BOND FUND A More Expansive Approach to Fixed-Income Investing CALVERT UNCONSTRAINED BOND FUND A More Expansive Approach to Fixed-Income Investing A Challenging Environment for Investors MOVING BEYOND TRADITIONAL FIXED-INCOME INVESTING ALONE For many advisors and

More information

INCOME IN ALL MARKETS COLUMBIA STRATEGIC INCOME FUND Class A COSIX Class C CLSCX Class R CSNRX Class R4 CMNRX Class R5 CTIVX Class Z LSIZX

INCOME IN ALL MARKETS COLUMBIA STRATEGIC INCOME FUND Class A COSIX Class C CLSCX Class R CSNRX Class R4 CMNRX Class R5 CTIVX Class Z LSIZX INCOME IN ALL MARKETS COLUMBIA STRATEGIC INCOME FUND Class A COSIX Class C CLSCX Class R CSNRX Class R4 CMNRX Class R5 CTIVX Class Z LSIZX NAVIGATING A CHANGING INTEREST RATE ENVIRONMENT Rise to the challenge

More information

Managing Working Capital Liquidity July 29, 2012 2:00 3:15 PM

Managing Working Capital Liquidity July 29, 2012 2:00 3:15 PM Managing Working Capital Liquidity July 29, 2012 2:00 3:15 PM Paul L. Robertson III Managing Director Edge Capital Partners, LLC 404-835-3280 probertson@edgecappartners.com Working Capital Management Process

More information

Fixed Income Markets Then and Now

Fixed Income Markets Then and Now Fixed Income Markets Then and Now Jason B. Stewart, CIMA Regional Director, Managed Accounts December 4, 2015 Pacific Region Investment Conference Bond Types and Considerations Municipal Government Corporate

More information

Average Annualized Return as of 11/30/2015 1. YTD 1 Year 3 Years 5 Years

Average Annualized Return as of 11/30/2015 1. YTD 1 Year 3 Years 5 Years Investment Options at a glance Current performance may be lower or higher than performance data shown. Performance data quoted represents past performance and is not a guarantee or prediction of future

More information

STANTON ASSET MANAGEMENT

STANTON ASSET MANAGEMENT STANTON ASSET MANAGEMENT CORPORATE FIXED INCOME MARKET MONITOR Fourth Quarter 214 Canadian Corporate Bonds Fourth Quarter 214 Data as of December 31, 214 Market Data (Avg.) Size Performance Spread DuraIon

More information

Any Gas Left in the High-Yield Municipal Tank?

Any Gas Left in the High-Yield Municipal Tank? Any Gas Left in the High-Yield Municipal Tank? May 9, 2016 by Chad Farrington of Columbia Threadneedle Investments A favorable credit environment and technical factors have contributed to strong highyield

More information

Average Coupon. Annualized HY Return 1996-1998 18 358 12.62% 10.32% 2005-2007 24 346 8.51% 8.44%

Average Coupon. Annualized HY Return 1996-1998 18 358 12.62% 10.32% 2005-2007 24 346 8.51% 8.44% UNDER THE SCOPE Walking the Line Is There a Magic Line for High Yield Spreads? April 2014 Is a credit spread of 400 bps a magic line for high yield? Is it easily crossed like the Maginot Line, is it a

More information

HIGH QUALITY PREMIER OUR PHILOSOPHY THE ATTRIBUTES OUR APPROACH

HIGH QUALITY PREMIER OUR PHILOSOPHY THE ATTRIBUTES OUR APPROACH HIGH QUALITY PREMIER September 30, 2015 (3Q) FACT SHEET OUR PHILOSOPHY We believe that securities with stable and predictable cash flows, and low credit and event risk produce consistent returns while

More information

The Case for High Yield, Revisited

The Case for High Yield, Revisited The Case for High Yield, Revisited DAN DOYLE, CFA MANAGING DIRECTOR AUGUST 214 While volatility has recently increased in the high-yield market, we believe this has been largely driven by technicals, not

More information

Annual Management Report of Fund Performance. Management Discussion of Fund Performance. Mawer Canadian Bond Fund. Results of Operations

Annual Management Report of Fund Performance. Management Discussion of Fund Performance. Mawer Canadian Bond Fund. Results of Operations Annual Management Report of Fund Performance For the Year Ended December 31, 2014 This annual management report of fund performance contains financial highlights but does not contain the complete annual

More information

Long duration bond benchmarks for corporate pension plans

Long duration bond benchmarks for corporate pension plans By: Yoshie Phillips, CFA, Senior Research Analyst OCTOBER 2011 Long duration bond benchmarks for corporate pension plans Issue: With the growth of liability-driven investing (LDI), many corporate pension

More information

ETF providers panel: A discussion of advisor experiences

ETF providers panel: A discussion of advisor experiences In association with ETF providers panel: A discussion of advisor experiences Moderator: Jonathan Morgan, ASX Panelists: Mark Oliver, BlackRock Amanda Skelly, SSgA Peter Harper, Betashares Paul Chin, Vanguard

More information

PH&N LifeTime Funds. Frequently Asked Questions

PH&N LifeTime Funds. Frequently Asked Questions Frequently Asked Questions PH&N LIFETIME FUNDS Your One-Fund Retirement Solution 1. What are target date funds? Target date funds offer a single-fund investment solution to help investors manage their

More information

ANY GAS LEFT IN THE HIGH-YIELD MUNICIPAL TANK?

ANY GAS LEFT IN THE HIGH-YIELD MUNICIPAL TANK? May 9, 2016 ANY GAS LEFT IN THE HIGH-YIELD MUNICIPAL TANK? A favorable credit environment and technical factors have contributed to strong high-yield municipal performance. We see limited room for further

More information

Emini Education - Managing Volatility in Equity Portfolios

Emini Education - Managing Volatility in Equity Portfolios PH&N Trustee Education Seminar 2012 Managing Volatility in Equity Portfolios Why Equities? Equities Offer: Participation in global economic growth Superior historical long-term returns compared to other

More information

Priority Senior Secured Income Fund, Inc.

Priority Senior Secured Income Fund, Inc. Priority Senior Secured Income Fund, Inc. This material is neither an offer to sell nor the solicitation of an offer to buy any security. Such an offer can be made only by prospectus, which has been filed

More information

March Default Report. Global Corporate Default Rate Ends Q1 2013 at 2.4% Default rates down again. Global default rate to finish this year at 2.

March Default Report. Global Corporate Default Rate Ends Q1 2013 at 2.4% Default rates down again. Global default rate to finish this year at 2. APRIL 8, 2013 March Default Report Global Corporate Default Rate Ends Q1 2013 at 2.4% Default rates down again The trailing 12-month global speculative-grade corporate default rate finished the first quarter

More information

When rates rise, do stocks fall?

When rates rise, do stocks fall? PRACTICE NOTE When rates rise, do stocks fall? The performance of equities and other return-seeking assets in rising and falling interest rate scenarios, January 1970 through September 2013 William Madden,

More information

NORTHERN TRUST HIGH YIELD FIXED INCOME QUARTERLY UPDATE. Highlighting attribution, economic and market analysis

NORTHERN TRUST HIGH YIELD FIXED INCOME QUARTERLY UPDATE. Highlighting attribution, economic and market analysis NORTHERN TRUST HIGH YIELD FIXED INCOME QUARTERLY UPDATE Highlighting attribution, economic and market analysis December 31, 2015 Northern Trust Asset Management 50 South La Salle Street Chicago, Illinois

More information

2-Minute Guide to Fixed Income Investing

2-Minute Guide to Fixed Income Investing 2-Minute Guide to Fixed Income Investing There s now more money invested in fixed income securities than in equity securities. And that market hasn t just grown it s grown more diverse, which means new

More information

Bank Loans vs. Global High Yield Caveat Emptor vs. Carpe Diem

Bank Loans vs. Global High Yield Caveat Emptor vs. Carpe Diem Topical Insight February 6, 13 Bank Loans vs. Global High Yield Caveat Emptor vs. Carpe Diem The significant decline in nominal yields and commensurate decline in risk premiums of U.S. high yield bonds

More information

Bank Loans vs. Global High Yield Caveat Emptor vs. Carpe Diem

Bank Loans vs. Global High Yield Caveat Emptor vs. Carpe Diem Topical Insight February 6, 13 Bank Loans vs. Global High Yield Caveat Emptor vs. Carpe Diem The significant decline in nominal yields and commensurate decline in risk premiums of U.S. high yield bonds

More information

Bond Snapshot with Kathy Jones The Year of the Taper

Bond Snapshot with Kathy Jones The Year of the Taper Bond Snapshot with Kathy Jones The Year of the Taper Kathy Jones, Vice President Fixed Income Strategist Schwab Center for Financial Research February 2014 Overview of Topics Tapering Implications Where

More information

Market Bulletin. November 7, 2014. U.S. High Yield: A bubble set to burst?

Market Bulletin. November 7, 2014. U.S. High Yield: A bubble set to burst? November 7, 2014 U.S. High Yield: A bubble set to burst? Grace Tam, CFA Vide President Global Market Strategist J.P. Morgan Funds Katy Fang Research Analyst J.P. Morgan Funds Tai Hui Managing Director

More information