Tag: High Yield Debt

The NASDAQ Could Re-Test COVID Lows & The Rise of High Yield

The NASDAQ Could Re-Test COVID Lows & The Rise of High Yield

Could the NASDAQ re-test the COVID lows of March 2020 when it sat around 6,900? Yes. That would require a prolonged recession (which we expect) AND The Fed not restarting its ultra-dovish monetary policy of Quantitative Easing combined with a near zero Fed Funds Rate. Who knows how the Fed will behave in 2H 2023 … Continue reading The NASDAQ Could Re-Test COVID Lows & The Rise of High Yield

Tough To Be A Fixed Income Investor

Tough To Be A Fixed Income Investor

It is tough to be a fixed income investor in this market. Yields are rising, but in real terms even high yield securities are in negative territory given the inflated CPI environment. Some fixed income portfolio managers are spinning that now is a great time to be a fixed income investor because high yield securities … Continue reading Tough To Be A Fixed Income Investor

Leveraging Alternative Assets To Increase Yield

Leveraging Alternative Assets To Increase Yield

Insurance company CIOs continue to use Alternative Assets to increase yield in this ultra-low interest rate environment. KKR Asset Management's Insurance CIO survey found similar results (chart below) to our recent TEK2day Spotlight report on the insurance industry which may be accessed HERE. We expect that the heavy use of Alternative Assets in the pursuit … Continue reading Leveraging Alternative Assets To Increase Yield

The Quixotic Pursuit of Yield

The Quixotic Pursuit of Yield

High Yield bond issuance has benefited greatly from the near zero interest rate environment. The Federal Reserve has played an increasingly larger role in the capital markets since 2009 with its extreme low interest rate and expansionary monetary policies. Q2'20 High Yield bond issuance of $125.4 billion was up 88% sequentially from $66.7 billion in … Continue reading The Quixotic Pursuit of Yield