The high yield corporate debt market consists of corporate debt issues with credit ratings below BBB (non-invest grade). Due to the non-investment grade ratings assigned to their debt, issuers in this class offer higher yields based on higher perceived default risk.
By constructing a diversified portfolio of over 100 corporate debt issuers, an investor can materially reduce the risk of principal loss caused by a default or credit downgrade without sacrificing aggregate yield and return opportunities. Further, by applying a rigorous research and examination process on issuers, one can materially reduce the portfolio default experience.
This marketplace remains inefficient and largely misunderstood. History has shown that a diversified portfolio of debt issued by solvent, US based corporations that have passed our fundamental research screening process can provide attractive returns with a fraction of the volatility associated with other asset classes and similar return structures.
Penn Capital's team oriented security selection and portfolio construction process, refined for almost 30 years, has enabled us to produce attractive long term track records.
Senior Floating Rate Loans
Preserves capital and generates high levels of income
Short Duration High Yield Credit
Preserves investor capital while managing duration and generating current income
Double-B High Yield Credit
Preserves investor principal while generating high levels of current income and maintaining low volatility
Defensive High Yield Credit
Preserves investor principal while generating high levels of current income
Opportunistic High Yield Credit
Generates residual returns through tactical allocation of capital
Maximizes total return through tactical allocation of capital
Distressed Total Return
Produces strong risk adjusted returns with the distressed corporate credit universe