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Over the past few months, the credit markets have flashed warning signs meriting investor attention. One standout failure, Tricolor Holdings, has raised concern about underwriting, complexity and servicer/asset quality oversight. Tricolor collapsed with allegations of double pledging collateral and weak documentation in its auto loan ABS structure. While the greater market appears to function as if these events were largely idiosyncratic, it marks an opportune time to review

High yield investments often showcase attractive nominal yields - but are your clients earning what's advertised? Realized returns frequently fall short of quoted yields due to default losses, especially in lower-rated credits. At Curasset Capital Management, we employ a practical framework that goes beyond headline yields. By incorporating realistic adjustments to arrive at a Yield to Default (YTD) measure, we explicitly incorporate the loss rates associated with investments

In equity markets, momentum investing can work even when valuations are high. Investment grade bonds are different. Core fixed income is meant to be the ballast in a portfolio, not a place to chase returns at any price.  When spreads run very tight, valuation discipline becomes critical. Where We Stand Today - Investment grade corporate bond spreads are currently just 74 basis points.  We haven't seen such levels since 1998 – leaving little room for further compression. - Whi