Profiting From the Remote-Learning Boom

This issue features of one of the largest and best-known online education companies in the world. The bonds declined 75% from their highs as the business stagnated in 2023 but now offer good value. As we detail in the analysis, these are speculative bonds with a meaningful chance of gain, a possibility of bankruptcy, and a real chance of loss.
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Moody’s Shows “Hidden” Defaults on the Rise

As escalating default and bankruptcy rates make bond investors increasingly risk-averse, we can expect to see a growing number of basically sound companies’ bonds trading at depressed prices. And that means opportunities for distressed debt investors will increase materially over the next year.
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Defaults Triple – But Market Thinks They Won’t Stay This High.

Most investors believe the Fed is done or nearly done with its inflation-fighting interest rate hikes – and so far, no recession is in sight. That means perceived risk will remain subdued in the high yield bond sector… for now.
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A Grounded Travel Company Prepares for Takeoff

The bond we’ll introduce today is trading at a 16% discount to par. The parent company was extremely profitable until the pandemic derailed its business. Now, three years removed from the pandemic, the company is turning a corner and on its way to becoming extremely profitable once again.
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Portfolio Update: Corporate Bankruptcies Reach Financial-Crisis Levels

Corporate bankruptcies are running at their highest rate since 2010, the year after the Great Recession. As defaults rise, investors will likely become more cautious about taking credit risk and it should become easier to find attractive values in lower-quality bonds.
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