Episode 39 – Fixed Income – The Past, Present and Future of High-Yield Investing
May 21, 2020

Episode 39 – Fixed Income – The Past, Present and Future of High-Yield Investing

Subtitle: How highyield investing has evolved over the last forty years.

In this episode Geoff Castle, Pender’s Fixed Income Portfolio Manager, talks to Glenn Reynolds, Chief Global Strategist and Co-Founder of CreditSights. Penderfixed income team have worked with the research analysts of CreditSights for a number of yearsGeoff and Glenn talk about the early days of high-yield, moving up to the present day and how past events may shape the post-COVID-19 future. 

Additional Resource:

Chart – Key Points in Market History

Key Takeaways

[02:19] Geoff and Glenn begin by discussing what first drew Glenn to high-yield markets in the 80’s.
[04:39] Glenn shares some war stories about high-yield in the 80’s, noting that what was normal for credit markets then are now regarded as signs of deep distress.
[06:53] Geoff asks Glenn to recall his role in one of the most iconic deals of the 80’s.
[11:45] They discuss how past market cycles can shed light on the current market cycle, and Glenn references key points in market history. 
[19:22] Glenn shares which sectors are presenting the cheapest opportunities in the market right now, in his opinion.
[25:53] Geoff asks Glenn about the opportunity for distressed debt funds and how he sees them earning returns in the near term.
[32:37] Glenn shares his thoughts on what the Fed has done to date, and the impact of these actions on the banks.
[33:46] Geoff asks Glenn what he believes is the biggest danger or opportunity investors are missing in the current market.
[35:40] Geoff closes the podcast by asking Glenn for a book recommendation.