A selective approach is key in high yield in 2025
What’s your strategy for 2025? What sectors are you overweight/underweight?
For short duration, our most defensive strategy, we’re looking for predictable companies that generate free cash flow, pay down debt over time, have strong corporate liquidity, and show positive year-on-year results momentum. For this approach, it matters less which sector that company is in as we assess companies through a bottom-up lens.
Our longer duration, benchmark-type strategies are where we’re combining that bottom-up process with some relative value considerations, seeking to outperform the benchmark with lower volatility, through a cycle. Currently, we are trying to get our yield closer to the benchmark without owning the distressed…
