In Energy Revolution, Bond Investors Must Keep Their Heads

By Ivan Rudolph-Shabinsky (pictured) and Petter Stensland A surge in capital expenditures and leverage in the energy industry could end badly for some companies and their creditors. While select opportunities exist, we think bond investors should think carefully before they blindly bankroll today’s North American energy revolution.

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High Yield’s September Sell-Off Doesn’t Change the Story

By Ivan Rudolph-Shabinsky (pictured) and Gershon Distenfeld of AllianceBernstein (NYSE: AB) The recent sell-off in high-yield bonds has many investors wondering whether this is another big buying opportunity—like prior sell-offs have been—or the start of something more ominous. 

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Low Duration Means Low Risk? Not Necessarily

To protect their portfolios from rising interest rates and volatility, many high-yield investors have headed for short-duration strategies. We think some of the more popular approaches may expose investors to bigger hazards than they realize.

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High-Yield Bonds: Call Waiting

High-yield bonds’ attractive income has made them popular in today’s low-rate environment. But market complacency has caused callable-bond investors to ignore a lurking risk: duration extension in a rising-rate scenario.

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Bank Loans: Is the Yield Worth the Chase?

Investors who rush into high-yield bank loans seeking competitive returns might find the yield they chase is hardly worth the pursuit. Loan yields—currently quoted at about 5%—seem attractive at first blush, but we think there’s a lot less here than meets the eye.

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High-Yield Bonds: Tackling the Tough Questions

With high-yield bonds at record high prices and interest rates so low they’re barely visible in some parts, investors have a lot of anxious questions. Our opinion: we think high-yield bonds still offer more income and fare better in rising rate environments than other bond types.

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Is CCC Credit Worth the Risk?

Typically, one would expect higher-risk assets to generate higher returns. But when it comes to high-yield corporate bonds, indiscriminate exposure to the CCC-and-below category may not produce the expected results. 

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