Martin Fridson, CFA will present empirical research that leads to some surprising conclusions about the high yield market, including.
- The best predictor of spreads on high yield bonds is not leverage, coverage, or free cash flow.
- Index-based spreads between rating categories provide misleading signals to sector rotators.
- There is no systematic underpricing of speculative grade busted convertibles.
- There are instances where yield and price move in the same direction.
- Market-cap-weighted indexes do not cause investors to be overweighted in the most leveraged credits.
- One previous study found that the high yield spread curve is positive. Another found that it is negative. Both were wrong.
- The reported volatility of the high yield asset class is unquestionably understated.
As always, members' participation is free. Non-member fee is $30.00
- When: Tuesday, September 21, 2021 at 3pm
- Where: Zoom - The link will be sent after you register
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