Could debt funds be an alternative to high yield?

Could debt funds be an alternative to high yield?

As the conventional high yield trade becomes distinctly more crowded, investors should consider the private debt market, says Stephen Walker, head of equities research and market strategy at Ashcourt Rowan.

When investors consider how to position themselves within fixed income markets, their two primary considerations are how much exposure they have to interest rates, and how much credit risk they should take. With the advent of private debt funds, they now have a choice between exposure to publicly and privately traded debt securities. But how can debt funds fit into that overall picture, and what are the issues for investors to bear in mind? Debt-equity balance It is currently a very interesting time for bond markets, with the tailwind for investors of ever-declining interest rates t...