Are High Yield Bonds Actually "Junk" with Vijay Srinivasan

In this episode of the "Making Sense" Podcast, Ed Butowsky and Vijay Srinivasan explore the realm of fixed-income investments through high-yield bonds. This area of investing is often misunderstood, with many investors viewing bonds as the safest option or being too cautious to invest in them.

Vijay's firm, Scarsdale Capital, has proven different.

In this episode:

• Vijay’s background at Marathon, what he learned, and why he decided to start Scarsdale
• Some questions investors typically like to ask:
  • What’s the most important difference between investing in junk bonds and government/safer bonds?
  • Why are yields back to 8% to begin the year?
  • What happens when they lower interest rates soon?
• Discuss what Vijay looks for in a company
  • Are there certain industries he likes/doesn't like?
  • What is the typical composition of your high-yield fixed-income portfolio in terms of sectors, credit quality, and maturity?
  • How does he compare high-yield bonds with other fixed-income investments out there?
  • How do you assess and manage credit risk in the high-yield bond market?

Established in 2018, Scarsdale Capital is a California-based hedge fund manager. The firm is led by Vijay Srinivasan, former global head of research and portfolio manager at Marathon Asset Management. It invests through its flagship fund, Scarsdale Capital Opportunity Fund, which focuses on high-yield and opportunistic credit situations.
This podcast contains general information that may not be suitable for everyone.

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