Hints and tips:
...The yield has been a significant draw for many investors who ploughed more than $50bn into the fund between 2017 and 2022, when rock-bottom interest rates meant there were few products that offered similar...
...“Public pension funds have for many years poured money into private equity on the premise that it was high-return and low-risk while illiquidity was deemed not to be an issue,” said Richard Ennis, co-founder...
...That compares to a yield of roughly 9.15 per cent on the average single B rated US corporate bond, ICE bond index data shows....
...KKR last year secured bonds backed by the catalogue that its “dislocation opportunities fund” and private credit business had purchased in 2021, pricing some of the debt with a yield below 4 per cent....
...Weinstein, whose company was one of the world’s best-performing hedge funds in the market turmoil of 2020, told the FT last year that high inflation would lead to “doldrum” markets and that he was “very...
...Like long-duration corporate bonds, investment grade or high yield, they may be liquid on a good day....
...Blackstone is putting a small share of every new deal it strikes into the BPXE vehicle, an approach that will require plenty of dealflow to yield a diversified fund....
...At nearly 12 per cent it dwarfs the 7.5 per cent that US high-yield bonds pay, and is close to the effective yield of super-junky triple-C bonds....
...Yet it was the unhedged funds that pulled in the big money, $4.9bn, while the hedged variants attracted just $0.8bn....
...The Macquarie bond strategy can invest up to 100 per cent of its assets in sovereign bonds, up to 70 per cent in investment grade credit and up to 20 per cent in high-yield and/or emerging market debt instruments...
...It’s the first time we’ve seen a yield that high since 2007....
...Real rates, using yields on 10-year inflation-linked bonds (Tips) as a proxy, are indeed high but have fallen nearly 50bp since the peak in October....
...His post helped fuel a recovery in Treasury prices, after an earlier sell-off had pushed yields to 16-year highs....
...InfraBuild is now looking to raise a new $350mn bond, with bankers at Jefferies indicating the new debt could offer yields as high as 15 per cent, according to several people involved in the deal....
...They then cannot recycle money back into funds. The conundrum of private investing is that in times of turmoil, attractive opportunities that do arise make distant profits....
...Yields have soared — they are at 15-year highs for gilts — and capital values have tumbled. This is particularly jarring for savers with defined contribution pension schemes....
...Leverage has been applied ‘downstream’ at the portfolio company level, ‘upstream’ with recourse to GPs and LPs, and ‘midstream’ to the funds that own portfolio companies in the form of NAV loans....
...out by persistently high interest rates....
...Just as the online lender makes its protracted public markets debut, US mortgage rates have hit a two-decade high....
...The bank includes syndicated loans, private debt and high-yield bonds in its survey as well....
...Only one of the 20 — the $151mn iShares Interest Rate Hedged High Yield Bond ETF (HYGH), the sole fixed income fund on the list — beat the 19.4 per cent decline in the Morningstar US Market Index....
...With UK gilt yields at decade highs, small fry asset managers, no matter their focus, get short shrift from the London market....
...Further reading:— Yield-crazed investors should not put too much faith in Hipgnosis (FT, 2020)— Stifel is worried that Hipgnosis Songs Fund is slipping out of tune (2021)— The music keeps on playing at Hipgnosis...
...But sceptics have criticised the deals because money from one fund is used to cash out earlier investors at values that in some cases now look high....
...Having a high share price means the fund can sell shares and use the proceeds to keep paying the dividend....
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