Investment Strategies > Short Duration High Yield

Short Duration High Yield

A strategy that seeks to generate high current income by investing in short duration high yield fixed income securities

Disciplined repeatable process managed by an experienced and stable investment team
Two sources of added value: avoidance of credit deterioration and relative value analysis
Comprehensive credit analysis driven by proprietary “Credit Best Practices” with a risk management overlay and ESG framework

Christopher Kocinski, CFA

Co-Head of U.S. High Yield & Senior Portfolio Manager

Joe Lind, CFA

Co-Head of U.S. High Yield & Senior Portfolio Manager

Investment Philosophy

Investment process seeks high current income while aiming to protect capital
Focus on B and BB opportunistic use: BBB and CCC credit tiers, floating rate corporate loans
Short duration is a natural extension of the team's existing high yield capabilities
Risk management consistent with client objectives and constraints

Universe
All corporate securities rated below BBB-, which is comprised of approximately 1,000 issuers, focusing on bonds maturing and trading yield to call inside of 5 years.
Eliminate
Less liquid issuers, defaulted and distressed securities and outliers and high-default potential issuers.
Relative Value Screen
Driven by longstanding "Credit Best Practices" checklist. Approximately 500 issuers.
Best Ideas
Credit analysis capabilities are complemented by a technology-driven set of proprietary analytical processes to identify, select and monitor portfolio positions. We leverage a customized database containing detailed information on over 2,000 U.S. and Euro-denominated credits. We select 100-150 issuers to own in client portfolios.