Summary

• Family-owned private businesses are particularly interested in sustainable leverage, as they want to ensure multi-generational prosperity.
• Smaller public firms also generally grant us access to their executives, in addition to their required quarterly reports and investor calls.
• Large public companies can and do issue bonds with longer maturities, which, combined with their smaller coupons, means that they carry more interest rate and price/spread sensitivity.
• The high yield bond market is heterogeneous. The only real connection among HY securities is that they are rated below investment grade.

In our experience, family-owned private firms and small-to-medium sized public companies are most likely to borrow responsibly and prioritize bondholders ahead of other investors.

The high yield (HY) bond market is heterogeneous. The only real connection among