While stocks have rode the bull market through most of this year, investment in credit instruments has not paid equally well. It goes without saying that the Fed’s decision to taper will not be kind to bond yields and to those who invest in them. Compared to the 29% gain on the S&P 500 up to the end of November, the Credit Suisse Leverage Loan Index gained only 5.59% whereas Barclays U.S Corporate High Yield Index has returned 6.87% over the same period. Hedge funds who trade loans and bonds have not done any better: HFRX Fixed Income – Credit Index has gained only 6.39% YTD after a nearly flat November.
Canyon, Contrarian up in November
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