Fixed Income 2: Finding Attractive Income Opportunities in a Yieldless World

A monthly performance review of Durig’s high yielding Fixed Income 2 (FX2) Managed Income Portfolio which also explores the many benefits that the portfolio can provide to investors.

(performance is reported net of fee, as of 2-20-20)

Performance Highlights

  • Over 6% in Cash Generation Alone
  • Year-to-Date Return of 6.20%
  • Trailing 1 Year Return of 7.72%
  • Trailing 3 Year Return of 9.03%
  • Trailing 5 Year Return of 9.13%
  • Annualized Return Since Inception of 8.72%
  • Average Bond Maturity of 4 Years
  • Alpha of 10.58 (vs. Benchmark)*
  • Beta of -1.22 (vs. Benchmark)*
  • Excess Return of 4.32% (vs. Benchmark)*

Frontier Communications Bonds, Short Term, High Yield, Fixed Income Investment, Yielding 27% YTM

This week, Durig Capital ventures into the telecom space to look at one of the country’s major telecommunications services providers. Frontier Communications (NASDAQ: FTR) has been working hard to transform itself as cable, voice and internet usage continues to change and evolve. The company’s most recent quarter highlights some of its progress as well as actions Frontier is taking to remain competitive.

Over 24.5% Yield-to-Maturity with GNC Holdings, Bonds Mature August 2020

This week’s bond focus takes a third look at a global specialty retailer of health and wellness products. Durig Capital’s last review of GNC discussed the Harbin China deal. While that deal is currently awaiting regulatory approval, GNC has since reported its second quarter results. The company continues to report successes in several areas.

 

  • Q2 international segment sales increased 11% year-over-year.

  • E-commerce sales increased by 8.3%

  • The company’s myGNC and ProRewards customer loyalty programs grew 14% and 8.8% respectively over Q1 levels.

  • Q2 interest coverage was a healthy 1.8x.