Double-B High Yield

The primary objective of the Double-B High Yield style is to preserve investor principal while generating high levels of current income from US based, US dollar denominated corporate debt. This is achieved by building a well-diversified, well-researched portfolio of cash-paying debt that are typically senior in a company’s capital structure.

The portfolio maintains a bias toward the upper tier (Double-B rated) of the high yield debt market. As a guideline, the portfolio will not own companies rated Single-B or Triple-C & below by both Moody’s and Standard & Poor’s. By applying a rigorous, research-driven internal rating process (PENN PRR), a consistent maintenance research on all holdings, and a strict downside sell discipline, this strategy attempts to generate long term performance that exceeds the broad market benchmark, particularly in down markets.