Warning signs have been flashing for quite
some time now in the HY market. Investors are seeing, in many cases, one
to three years of gains in their underperforming hedge funds wiped
out in days. This global market rout may be one last warning sign for
investors to get out of their risky high yield bonds with only a few bumps and
bruises and to GET SHORT. Macroeconomic headwinds and questionable fundamentals
in these habitually underperforming companies will make new issuances and
refinancings increasingly difficult, if not
impossible. Poor operating results over the last several years have not
limited these companies’ ability to lever up, but we think that time is coming
to an end. Liquidity in the overall high yield market has tightened and
shows continuing signs of erosion. All of these dynamics combined make
right now the opportune time to consider investing in the Tradex Short-Biased
High Yield strategy.
Tradex Global Advisory Services, LLC
investorrelations@thetradexgroup.com
203-863-1500
@Tradex_Global
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