Short-Term High Yield: Solving the Duration-Versus-Credit Dilemma
This paper discusses how the Short-Term High Yield Bond Fund can help investors earn an attractive level of income while controlling duration and credit risk in a rising rate environment.
1/31/2023
21 min read
Topic
Fixed Income
Key takeaways
- The Short-Term High Yield Bond Fund seeks to control duration and credit exposure while generating a high rate of income.
- The fund’s typically short duration is intended to manage interest rate risk.
- With a targeted credit quality of BB, the fund relies on active security selection to seek strong relative performance when spreads widen.
- The fund seeks to generate a consistent stream of high income with limited default and duration risk through all market environments.
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