Since we launched our blog last September, we have received a lot of positive support. We sincerely appreciate you taking time out of your day to read our thoughts on the market.
Below, we have highlighted our three most popular blog posts from 2020 to date. Two of our most read blogs this year came from our special Week in Review series during March when the market was unraveling. We’re happy to be able to provide perspective when investors need it most. See which ones made the top 3 list.
If you have a topic you would like for us to cover, please contact us. We appreciate your feedback.
The DDJ Investment Team
High Yield Bond & Leveraged Loan Week in Review March 13 - March 19, 2020
After a tumultuous five days of market activity ending Thursday, March 12th, the high yield bond and leveraged loan markets were enjoying a day of moderate gains and relative calm last Friday. Subsequently over the weekend, several actions taken by various levels of government led market participants to conclude that the COVID-19 outbreak would begin impacting economic activity far more tangibly than perhaps originally contemplated. The unexpected announcement by the Federal Reserve, which included a reduction of the Fed Fund’s rate to near zero as well as the re-initiation of its quantitative easing program, further confirmed these fears. These combined events sent equity futures tumbling on Sunday evening. Not surprisingly, when markets opened on Monday, all markets, including the high yield market, reacted negatively to this news. In our view, market participants likely perceived the actions taken by the Fed as a signal that things in the market and economy were much worse than originally thought.
High Yield Bond & Leveraged Loan Week in Review March 20 - March 26, 2020
On Thursday, March 19th, in an effort to mitigate the burgeoning COVID-19 outbreak, California enacted the strictest state “lockdown” to-date, with similar actions then followed by multiple other states over the next few days. As a result, the economic implications associated with the essential closure of large parts of the U.S. economy have begun to set in. Meanwhile, in Europe, new COVID-19 cases and fatalities continued to increase at an alarming rate, an ominous sign for the U.S., which is believed to be a few weeks behind Europe in terms of progression of the virus. Major investment banks, such as Goldman Sachs and Morgan Stanley, slashed their U.S. economic growth estimates, with such firms now expecting record declines in second quarter 2020 annualized GDP of -24% and -30%, respectively. On Monday, March 23rd, in response to the deteriorating economic outlook and declining liquidity across multiple sectors and markets, the U.S. Federal Reserve announced an expansion in both the size and reach of its asset purchase program as well increased direct lending for small and medium-sized enterprises, with a pledge to do more as needed. Despite these actions, the failure of Congress to pass a stimulus package over the weekend contributed to a down day across risk markets to begin the week. In our view, with significant uncertainties regarding the length of state lockdowns and the size of the total fiscal and monetary policy response, DDJ believes that it is still premature to forecast the economic impacts of the current crisis over the next three-to-six months.
DDJ Adds Two Industry Veterans to Business Development & Client Service Team
WALTHAM, MA, January 22, 2020 – DDJ Capital Management announces the addition of two industry veterans to its business development team. William G. (Bill) Porter and Meaghan K. Mahoney have joined DDJ to focus on consultant relations and new business development.
Mr. Porter joins DDJ as a director of sales & consultant relations following an extensive 27-year career in the investment industry, including work in consultant relations, relationship management, business development and client portfolio management. Prior to joining DDJ, Mr. Porter was a senior vice president, head of institutional distribution for North America at Amundi Pioneer Asset Management, where he also served as a member of the firm’s U.S. Management Committee. Mr. Porter received his MBA from Northeastern University and his BA, magna cum laude, from St. Lawrence University.
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.
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