◀ The Principal Blog

Posts tagged ‘yield’

Will the Market Be Cuckoo for CoCos? That’s Contingent Convertibles.

Remember the commercials featuring Sonny the Cuckoo Bird going absolutely nuts and repeating the phrase, “I’m cuckoo for Cocoa Puffs!” after eating a spoonful of the chocolaty goodness? In some sense, that’s been investors’ behavior for any investment offering yield in today’s…

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Bank Loans + High Yield Bonds > Bank Loans Alone

Even after a bumper year of investor inflows, high yield bank loans underperformed high yield bonds in 2013. Flows into bank loans, a segment of the overall high yield fixed income market, were north of US$62 billion, and yet the total returns in the high yield bond market were better. Why didn’t…

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