ISD News and Press, PGIM Short Duration High Yield Fund Inc. From 01/01/19

Original Post Crescat Capital December 31, 2018, update to investors below. We are happy to report estimates for Crescat's 2018 performance: Profit Attribution by Theme Investment Outlook Summary September 20, 2018, should mark the closing high for the S&P 500 to end the s...

How the Corporate Debt Bubble Will Crush Stocks Corporate debt, after years of encouragement by the Fed via artificially low interest rates, has reached historic levels. Now even the Fed is worried about its handiwork. Many of these companies will default over the next few years. This is a c...

As equity prices have cratered in the last several trading days, one area of the market that has predictably come under selling pressure is high yield credit. The chart below shows the 50-day rate of change in spreads on high yield bonds relative to treasuries. When spreads are rising, it indi...

The Junk-Bond Market Just "Puked." Risk is getting repriced. And rather suddenly. What are the real-world consequences? And how will it impact stocks? The Fed has warned about them, and investors fear a run-on-the-fund. Read… $1.3 Trillion "Leveraged Loan" Boom Comes Read...

With the price plunge which started in early October, the P/E ratio of the S&P 500 (using Bloomberg's measure, which is based on 12-month trailing earnings from continuing operations) has fallen from a high of 23.3 last January to 16.48 currently. To put this into perspective, consider tha...

By Matthew Minnetian, Susan Hutman, Gershon Distenfeld The media and some market observers are bracing for a blizzard of BBB-rated bonds to get downgraded to junk as the credit cycle turns. We expect it will be closer to a flurry. Investors are right to be concerned, of course. US corp...

By Collin Martin Key Points Risks are rising in the corporate fixed income markets and we suggest a more cautious stance heading into 2019. Investors should consider moving up in credit quality. Coupon income will likely be a key driver of total returns in 2019. Risks are...

Introduction The opportunities in closed-end funds over the last few months caught the eye of many investors. Most of these products are designed to provide a steady stream of income, usually on a monthly or quarterly basis, as opposed to the biannual payments provided by individual bonds....

By Brian J. Lavin, CFA, Senior Portfolio Manager, Head of U.S. High Yield Fixed Income The risks and rewards of high-yield bonds. And how interest rates, the energy sector and tariffs factor in. 1. Higher risks require higher yields. There are more risks in high-yield bonds compared ...

By Frank Caruso and John Fogarty US corporate debt has surged over the past decade. As rates begin to rise from historic lows, focusing on quality companies with healthy balance sheets can help equity investors avoid danger zones. Ultra-low interest rates have fueled financial markets fo...