Short Duration High Yield

Overview

The Short Duration High Yield strategy invests in short-duration high yield bonds. Less sensitive to market volatility, these types of bonds may offer strong levels of high current income, with limited exposure to interest-rate and credit-spread risk.

 

Why choose this investment strategy?

Our team of high yield portfolio managers and analysts averages nearly two decades of industry experience. Guided by their combined expertise, our Short Duration High Yield strategy can offer several benefits:

•    A blended investment approach: Rooted in fundamental security selection, we go beyond typical bottom-up high yield investing to incorporate key macroeconomic factors that have potential to drive performance. Using our internal framework that focuses on fundamental, technical, and relative value research, we’re able to take a forward-looking view and identify investment choices that strictly bottom-up managers might miss.

•    An integrated, specialized team: Our high yield team doesn’t operate in a vacuum—they’re an integrated part of our broader Principal Global Fixed Income credit team. Our shared insights and specialized knowledge allow us to invest across the capital structure, offering diversified portfolios that can be customized to your investment needs and goals.

•    Explicit risk controls: We use pre-set security and portfolio risk controls, and define clear exit strategies before investing in a credit. These dynamic risk measures allow us to help limit risk when needed, and increase risk when warranted.

 

Where Short Duration High Yield invests:

The strategy invests across the capital structure, typically with a bias toward larger, more-liquid global issuers.

Our investment style is deeply rooted in fundamental research, which drives our decision-making process. Using our proprietary FTV (fundamental, technical, and valuation) research framework, we create a stable, repeatable, and unemotional investment foundation that delivers portfolios for up and down markets.