Dedicated to Fixed Income Investing

Obsession with liquidity via money market funds comes at a price, which is why investors may want to consider short- and ultra short-term bond funds with higher yields as rates stay lower for longer.

Consider the improving fundamentals, modestly positive technicals, and favorable valuations that offer a historically attractive entry point. What’s more, as measured by excess returns, loans actually outperformed high yield five of the seven months through July of 2020, and have outperformed high yield bonds historically during downturns.

Mike Kirkpatrick joined Virtus Chief Market Strategist Joe Terranova for an insightful discussion about active management in the high yield market.

High yield fundamentals have shown remarkable resilience, and the sharp rise in fallen angels through 6/30/20 spells considerable potential opportunities for nimble managers that can spot relative values and manage risk.