“Outlook on High Yield Markets”

Insights from the defensively-minded, high yield fixed income team of Buffalo High Yield Fund portfolio managers

The high yield market (as measured by the BofA Merrill Lynch HY Master II Index) has rallied significantly since February 2016 and notched 20 consecutive months without posting a loss of 50 basis points (bps) or more, something that hasn’t occurred in over 20 years. In this latest report, the portfolio managers of the Buffalo High Yield Fund identify several factors that have driven spread compression and high yield performance in the market.

Areas covered in this report include:

  • Our view on today’s high yield markets
  • Current market drivers
  • Areas of concern
  • Action items for investors
  • The appeal of bank loans
  • The risks of high yield index benchmarks
  • Our distinctive investment approach to high yield markets

As a defensively-minded, high yield fixed income team, the Buffalo High Yield Fund portfolio managers follow a more cautious investment philosophy, with the goal of producing compelling risk-adjusted performance over a full market cycle.

Past performance is not a guarantee of future results. Index performance is not illustrative of fund performance. It is not possible to invest directly in an index. Please click here for fund performance.

Fundamental Approach

We get to know the companies we invest in and learn how they run their business.

Top-Down & Bottom-Up

We identify Top-Down broad, secular growth trends and search for companies from the Bottom-Up.

Proprietary Philosophy

We construct our portfolios based on our own proprietary investment strategy.

Disciplined Investing

Sticking to our disciplined investment strategy ensures we maintain a consistent, balanced approach.