Asset classes

Global High Yield Update - Todd Youngberg and Martin Gawne - February 2013

Web Conference Call 8 November 2012 

In this web conference, Todd Youngberg, Head of Global High Yield Bonds, discusses both the short and longer term outlook for global high yield and the team’s current strategy positioning. You can access a replay to the web conference through the link below.

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Todd Youngberg, Head of Global High Yield Bonds in an in depth Asset TV interview

Todd Youngberg, Head of Global High Yield Bonds gives us a short overview of the High Yield Bond market

High yield bonds can offer compelling total return potential in today’s low yield environment. But investing successfully in this specialist area calls for disciplined research and risk management capabilities.

High yield bonds have tended to have low correlations with other fixed income asset classes, and with equities. While they offer more income than lower yielding debt, this naturally comes with additional risks.

We have been investing in this asset class since 1995. We manage those risks through a disciplined investment process that focus on high quality research and due diligence, clear entry and exit strategies and a focus on higher-quality bonds. As a result, we have experienced very few defaults in our portfolios.

Pure credit exposure
We are a pure-play corporate high yield manager. This strategy does not invest in structured products or emerging market debt, or allow currency risk in our portfolios.

Wider opportunities

Being a global high yield manager widens the opportunities for our clients. For example, we can allocate between regions, or take full advantage of anomalies in how an issuer’s bonds are trading in different markets. We are also one of the few asset managers to offer our clients a global short-duration high yield bond strategy.

Disciplined selection, strong risk management

Our investment process focuses on the probability of default and the severity of potential losses. Before we invest we must have a clear investment thesis and exit strategy, both of which are re-tested regularly.

Industry expertise

If there’s one thing that can be said to underpin our success, it’s the quality of our research. Our analysts are sector specialists who have an well researched knowledge of the companies and the securities in their sectors. The analysts cover the entire market, so we can see what is moving from, for example, investment grade to high yield, and analyse a company’s complete capital structure.

A global team with a common language

Our global high yield team, headed by Todd Youngberg, comprises 5 portfolio managers and 26 global credit analysts based in the US, Europe and Asia. All our credit teams use our proprietary Fundamental, Technical and Valuation approach, providing a common language for research and portfolio management.

Your global fixed income specialist

Fixed income is a core area of Aviva Investors’ expertise. With 139 fixed income specialists on three continents, we are in an excellent position to understand what makes local bond markets tick – and understand your needs, wherever you are.

*Source: Aviva Investors, 30 September 2011
Past performance is not a guide to the future. The value of an investment and any income from it may go down as well as up and the investor may not get back the original amount invested.