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Examining the Divergence Between Equities and Credit.
"In our view, an interesting alternative would be to own high-yield bonds but then hedge the interest rate risk of the portfolio. In this approach, investors are able to isolate their exposure to credit risk while reducing their exposure to movements in interest rates."
Sounds like what Pimco funds try to do...PHYDX? PONDX will give you a slug of HY with better MaxDD in my opinion.
Comments
"In our view, an interesting alternative would be to own high-yield bonds but then hedge the interest rate risk of the portfolio. In this approach, investors are able to isolate their exposure to credit risk while reducing their exposure to movements in interest rates."
Sounds like what Pimco funds try to do...PHYDX? PONDX will give you a slug of HY with better MaxDD in my opinion.