Investing in a Subset of U.S. Corporate Bonds Could Provide Solid Returns in 2014 Without Unnecessary Risk, According to Scott's Cove Management LLC
NEW YORK, NY--(Marketwired - Dec 4, 2013) - Many investors believe 2014 will be a dangerous time for corporate credit and that they should thus avoid the asset class. Federal Reserve tapering and rising interest rates could lead to zero returns (aka "dead money") or even significant capital losses.
But steering completely clear of corporate bonds may not be wise, since the right ones may still, as history suggests, offer the potential for solid returns and significant downside protection, according to Scott's Cove Management LLC, an event-driven corporate-credit-focused investment manager.
Scott's Cove Senior Portfolio Manager Phillip Schaeffer says investors may be well served to adopt a mindset regarding corporate bonds that is based on the following suggestions and insights:
"By taking a smart and patient approach to this niche area of the corporate credit market, investors can expect a high likelihood of not losing money, along with good, 'Steady Eddie' returns," Mr. Schaeffer says. "It's a compelling alternative to both the equity and more mainstream fixed income markets."
About Scott's Cove Management LLC
Scott's Cove Management LLC (SCM) is an event-driven, long-short, credit-focused investment manager whose objective is to protect capital and generate compelling absolute returns over all market environments. On the long side, SCM focuses primarily on senior and secured debt of lesser-followed high-yield corporate issuers, including distressed situations. On the short side, SCM seeks fundamentally overvalued and economically deteriorating issuers, often as a hedge to protect the portfolio. SCM (including its predecessor firms) was founded in 1991 and is based in New York. For more information, please visit www.scottscove.com.
Contact Information:
Media Contact:
Frank Lentini
Sommerfield Communications
(212) 255-8386
Lentini@sommerfield.com