The objective of the Defensive High Yield strategy is to preserve capital while generating high levels of current income. The strategy has a track record spanning over 20 years, generating alpha over the broad ICE BofA High Yield Index and more defensive than the ICE BofA BB-B Rated Index with durability through down markets.
Differentiated profile characteristics of the Defensive High Yield strategy:
- Focus on Single-B and above credit quality rated bonds that are typically senior in a company’s capital structure
- Downside sell discipline with detailed covenant review, including change of control
- Identify relative value opportunities and upgrade candidates