Guided Strategy Finder
×
Guided Strategy Finder
Make a selection to be directed to a strategy that meets your needs.
Submit
Make a selection to be directed to a strategy that meets your needs.
Submit
Market Review and Outlook 2Q21 - Leveraged Finance
Another Strong Quarter as Economy Re-opens
Solid economic growth has significantly reduced default risk and should allow leveraged loan and high yield issuers to de-lever and grow into their balance sheets.
Market Review and Outlook 2Q21 - Investment Grade and Tax-Exempt Fixed Income
Peak Growth, Peak Inflation, Rates Rally
As a result of a modestly “less dovish” stance by the Federal Reserve (Fed), long Treasuries were up almost 6.5% in the second quarter after being down 13.5% in the first quarter. Long TIPS (Treasury Inflation-Protected Securities) were up over 8% compared to an 8.8% decline in the first quarter, as they benefited from the upside surprises seen in the consumer price index over the quarter.
Inflation Perspectives with Seix’s Head of Leveraged Finance
George Goudelias shares his latest thoughts on the prospects for inflation and how certain asset classes may help protect portfolios in an inflationary environment.
How a High-Yield Fund Is Becoming a ‘One-Stop Shop’ for Bond Investors
Seix Senior Portfolio Manager Michael Kirkpatrick and his team focus on higher-quality credits that can minimize losses during selloffs, while also looking for mispriced securities to improve performance.
Market Review and Outlook 1Q21 - Leveraged Finance
As rates and inflationary expectations rose, investors in search of higher yields returned to the leveraged loan market in the first quarter. That allowed us to explore a number of new relative value opportunities. We also held on to the names we felt had the liquidity to ride through the pandemic lockdown, and we’re starting to see that benefit now.
In the high yield market, the three key dynamics were the COVID-19 vaccine rollout, the Treasury sell-off, and a record increase in supply. The ICE BofA US High Yield Index had a 0.81% return. The Index ended the quarter with a yield of 4.36%. The BB index ended with a yield of 2.58%. The single-B index ended at 3.92%, and CCCs tightened to 6.3%.
Hedging Inflation with Bank Loans and High Yield Bonds
According to a Morningstar analysis of nearly 100 asset classes and strategies over the 20 years ended December 31, 2021, bank loans and high yield bonds ranked first and fifth, respectively, in their correlations with inflation. Meantime. Bloomberg data shows that in the 18 periods since January 1999 when the 10-year Treasury bond yield rose 50 basis points or more, bank loans performed positively in 17. High yield bonds performed almost as well, turning in positive performance in 14 of these periods.
Look for High Yield Durability in 2021
Don’t let record low rates sway you. High yield still has the potential to enhance income and total return, lower interest rate volatility, and diversify risk in fixed income portfolios.
News & Insights Archive