High Yield Debt Investing with Rajay Bagaria
Excess ReturnsApril 19, 202300:54:04

High Yield Debt Investing with Rajay Bagaria

In this episode, we talk high yield debt investing with Rajay Bagaria, CIO of Wasserstein Debt Opportunities and author of "High Yield Debt: An Insider’s Guide to the Marketplace." We look at the high yield debt market from the ground up and cover the major players, the types of high yield debt and the terms and concepts investors need to understand when looking at the space. We look at the fundamentals of high yield debt investing and the key concepts to understand, who the buyers and sellers are in the high yield market, the return profile of high yield debt and how it compares to other areas of the market and much more.

03:31 - Rajay's experience building a private elementary school
05:25 - How Rajay got into high yield debt investing
06:49 - Setting the landscape of the high yield debt market
07:53 - the origin of the high yield debt market
10:16 - how high yield debt issuers think about their capital structure
12:18 - high yield bonds vs. leveraged loans
14:34 - the major buyers of high yield debt
18:24 - ranking and subordination
19:50 - what are covenants and how do they work?
22:13 - what do credit ratings mean?
24:46 - the industry breakdown of the high yield market
26:01 - the meaning of high yield spreads
30:42 - high yield spreads and the equity market
32:09 - the return profile of the high yield market
33:38 - high yield performance by credit rating
37:08 - leveraged loans in multi-asset portfolios
40:19 - is a refinancing wall coming?
42:00 - how good of a job do ratings agencies do?
48:00 - the role of debt paydown in Rajay's analysis of a company
49:44 - how investors can think about high yield ETFs
52:39 - the one lesson Rajay would teach the average investor

RAJAY'S BOOK
https://www.amazon.com/High-Yield-Debt-Insiders-Marketplace-ebook/dp/B01AJUF6RW

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