Here's a statement of the obvious: The opinions expressed here are those of the participants, not those of the Mutual Fund Observer. We cannot vouch for the accuracy or appropriateness of any of it, though we do encourage civility and good humor.
Support MFO
Donate through PayPal
RiverPark Strategic Income 3Q22 Shareholder Letter
"The sharp rise in interest rates and the widely expected resultant recession may also be the 'zombie killer' that finally forces a wave of restructurings among companies reliant on accommodative capital markets to provide cash infusions to cover interest expense. That said, as a result of the dislocation that has already occurred, there are a lot of quality companies with 'money good' debt yielding 7.5-11.5% with maturities in the 1-3-year sweet spot."
With regard to Short-Term High Income, "As of September 30, 2022, the portfolio was comprised of securities with an average maturity of 4.17 months ... the Weighted Average Market Yield to Effective Maturity was 8.09% for Effective Maturities of 31 days or more. That comprised 64% of the invested Portfolio."
Seems hopeful. (More hopeful if I could keep the various yield calculations straight.)
i continue to hear from the talking heads that junk bonds are better positioned generally than in the past. Defaults are not expected to be much of a problem in the current circumstances. Share prices on bond funds are in the toilet, but if you've waited to buy-in, the yields right now are juicy.
Comments
With regard to Short-Term High Income, "As of September 30, 2022, the portfolio was comprised of securities with an average maturity of 4.17 months ... the Weighted Average Market Yield to Effective Maturity was 8.09% for Effective Maturities of 31 days or more. That comprised 64% of the invested Portfolio."
Seems hopeful. (More hopeful if I could keep the various yield calculations straight.)