Commentary
2Q2024 - Credit Opportunities Fund Commentary
We believe current yield levels in the high yield bond and leveraged loan markets are compelling and more than compensate investors for the increased risk associated with tighter spreads.
Read the full commentary & disclosures here
- Over the second quarter of 2024, the Polen Credit Opportunities Fund (the “Fund”) returned 0.94% versus the 1.09% return of the ICE BofA U.S. High Yield Index (the "Index”).
- High yield bonds and leveraged loans produced gains in Q2, with leveraged loans outperforming their fixed rate peers.
- Compelling earnings, active primary markets, and a cooperative macro environment supported the leveraged credit market
- Specialty Steel Holdco and Internet Brands contributed the most to absolute performance, whereas American Tire Distributors and Xplore detracted the most significantly.
- We made no significant changes to positioning during Q2. However, the Fund experienced increased refinancing activity. We deployed those proceeds primarily into high yield bonds.
- Notable transactions include new positions in Multi-Color Corporation's First Lien Secured Notes and First Lien Term Loan. The Fund sold its position in Hertz Global Holdings Senior Notes.
