As the new year kicks off, bond investors are grappling with the Fed cutting short-term rates just as long-term rates have started to rise again. The two paths are seemingly contradictory, resulting in the “steepening of the curve.” Meanwhile, credit spreads remain near multi-year tight levels.
Fixed-income investments come in all kinds of wrappers. While traditional bonds are best known and fairly straightforward, other asset types such as convertible bonds, loans, and preferred stocks also offer a stated return over a set period of time. In this blog post, we focus on preferred stock, a...
Everyone knows Warren Buffett’s two rules of stock investing: Rule #1 – Don’t lose money Rule #2 – Don’t forget rule #1 At Intrepid, we have adopted these rules wholeheartedly into our investment process, with a slight adaptation for investing in corporate debt:
Frequently, clients ask about our position in non-rated (also referred to as unrated) bonds, which often represent one of the largest slicesof the Fund’s composition, when categorized by credit rating.
In many investment circles, the high-yield bond universe has little nuance: it’s viewed as an asset class comprised of debt issued by companies that need to pay higher interest rates because they fall short of rating agencies’ definition of investment-grade creditworthiness.