Interested in reading about privately placed 144A high yield bonds trading on the secondary market? Did you catch our popular audiocasts on topics such as the impact of fallen angels and the factors that led to negative oil prices? Below, check out our top-three blogs of 2020.
144A Bonds and Why We Buy Them
September 24, 2020 - “Rule 144A is therefore very valuable to issuers, as it reduced the cost of capital by improving the liquidity of the institutional secondary market for privately placed bonds.”
– Andrew Ross, CFA, Director, Portfolio Specialist
Not familiar with 144A bonds? You’re not alone. Given the growth of bonds issued via Rule 144A (“the Rule”) and their increased importance in the high yield market, we thought it would be informative to provide a brief overview of Rule 144A and the bonds issued under this rule.
Rating Downgrades and the Effect of Fallen Angels
March, 27, 2020 - DDJ Capital Management recently recorded an audio market update with firm Founder, Portfolio Manager and CIO David Breazzano to discuss the extreme volatility and liquidity challenges in the high yield market. A question was asked about the downgrading of BBB-rated bonds (aka “fallen angels”) into the non-investment grade universe and what kinds of disruptions and opportunities this activity will create.
Listen to Mr. Breazzano’s response from the call on March 27, 2020.
Energy Sector Update with Sameer Bhalla, Senior Research Analyst
April 21, 2020 - DDJ Capital Management recently recorded an audio market update with Sameer Bhalla, Senior Research Analyst with 16 years of industry experience in the Energy space, to provide an update on the crash in oil prices and its implications for energy companies within the high yield universe.
One of the subjects that Mr. Bhalla and his co-host Stacy Havener, Founder & CEO from Havener Capital Partners, discussed was West Texas Intermediate (WTI) oil prices recently turning negative and the factors that led to this unprecedented development. Below is an excerpt from their conversation:
“On the supply side, the supply continues to come on. If you have oil and gas wells that are producing today, you can't immediately shut those off."
The information and views expressed herein are provided for informational purposes only, and do not constitute investment advice, are not a guarantee of future performance, and are not intended as an offer or solicitation with respect to the purchase or sale of any security. The inclusion of particular investment(s) herein is not intended to represent, and should not be interpreted to imply, a past or current specific recommendation to purchase or sell an investment. Any projections, outlooks or estimates contained herein are forward-looking statements based upon specific assumptions and should not be construed as indicative of any actual events that have occurred or may occur. This material has been prepared using sources of information generally believed to be reliable; however, its accuracy is not guaranteed. Investing involves risk, including loss of principal. Investors should consider the investment objective, risks, charges and expenses carefully before investing with DDJ.
Past performance is no guarantee of future returns.