corporate and high yield strategies
Educational articles in this subcategory.
Leveraged Loans vs. High-Yield Bonds
Institutional investors allocating to corporate credit face a fundamental tension: balancing covenant protection with liquidity. Leveraged loans and h...
Covenant-Lite Loans: Risks and Rewards
Covenant-lite loans now comprise 40-50% of new U.S. high-yield loan issuance, reflecting borrower and lender incentives to bypass traditional financia...
Green and Sustainability-Linked Bond Issuance
Green and sustainability-linked bonds (SLBs) now constitute 15% of global corporate issuance, driven by institutional demand for ESG alignment. For Co...
Make-Whole Call Provisions Explained
Corporate and high-yield bond investors face a persistent tension: issuers’ incentive to refinance when rates fall versus investors’ expectation of st...
Liquidity Buckets Within Corporate Debt Funds
Corporate and high-yield debt funds face a persistent trade-off: maintaining sufficient liquidity to meet redemptions while avoiding the yield drag of...
Impact of Fed Policy on Credit Spreads
Fed policy changes are the single largest driver of credit spread volatility in Corporate and High-Yield markets. A 100 bps shift in Fed funds rates t...
Credit ETFs and Creation/Redemption Mechanics
Corporate and high-yield credit ETFs serve as critical tools for managing illiquid bond exposures, yet their value hinges on seamless creation/redempt...
Analyzing Covenant Packages in New Deals
Covenant packages in corporate and high-yield deals act as financial tripwires, but their design creates a perpetual tension: stronger protections oft...