The recent announcement by Third Avenue fund to close client redemptions on their high yield bond fund ruffled investor feathers and started necks craning to look around for who might be next.
Here is an article on the matter from zerohedge citing a Morningstar list of best and worst junk bond funds. Keep in mind, however, what longtime distressed bond investor billionaire Howard Marks recently noted.
Marks, speaking Tuesday at Goldman Sachs Group Inc.’s U.S. financial services conference in New York, said he’s seen many bonds across industries slide to 60 cents on the dollar from 90 cents since September. Los Angeles-based Oaktree is spending a lot of time studying oil and gas companies, he said.
High-yield bonds tied to energy companies have slumped 25 percent since June of last year. Brent crude on Tuesday briefly fell below $40 a barrel for the first time in almost seven years after the Organization of Petroleum Exporting Countries effectively abandoned any limits on output.
“Hedges were in place that have worn off; companies will lose their credit lines,” Marks said of oil producers. “Some of the price declines and some of the weakness makes the prospective buyer very happy.”
zerohedge.com/news/2015-12-11/which-high-yield-fund-gates-next-after-third-avenue-here-are-unusual-suspects
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