Explores the potential benefits of a high yield strategy that emphasizes lesser followed, smaller issues, given that we believe these smaller issues tend, for a variety of reasons, to offer greater value in terms of yield per unit of default risk while providing information dynamics that can provide an opportunity for an active manager to add security-specific alpha above and beyond the simple “liquidity premium” observed in the high yield market.
Disclosure
Alpha is an annualized return measure of how much better or worse a fund’s performance is relative to an index of funds in the same category, after allowing for differences in risk.