US High
Yield Credit
Focusing on fundamental quality
Reasons to invest
High income
Business quality advantage
Relative value
Track record
ESG integration
We believe that bottom-up fundamental analysis focusing on the quality of an issuer’s underlying business has the potential to generate competitive returns over time.
Why US High Yield Credit?
When Federated Hermes employs the term “quality”, we refer to the quality of an issuer’s underlying business – we find that ratings agencies tend to focus on leverage. We put a premium on a company’s ability to service debt through consistent and predictable free cash-flow generation, helping us build a more robust portfolio for clients.
The strategy is a true representation of the high yield market – we have no exposure to bank loans, emerging-market debt or derivatives, nor do we purchase equity securities. Meanwhile, Federated Hermes’ strategy has performed well through various, and sometimes violent, market cycles as we seek to limit risk in down-markets.
Our strategy is managed by an experienced and dedicated 14 person investment team with an average investment experience of more than 20 years. The strategy’s lead portfolio manager has been managing the strategy for over 44 years – all at Federated Hermes.
How we invest
Investment Philosophy
We believe that bottom-up, fundamental analysis focusing on the underlying quality of an issuer’s business has the potential to generate competitive returns over time.
Investment Process
Team
Thomas C. Scherr, CFA
Vice President, Portfolio Manager, Senior Investment Analyst
Kathryn P. Glass, CFA
Vice President, Portfolio Manager, Senior Investment Analyst
Mark E Durbiano, CFA, MBA
Senior Vice President, Senior Portfolio Manager
Mitch Reznick, CFA
Head of Sustainable Fixed Income, Federated Hermes Limited
Product information
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