LOS ANGELES, CA--(Marketwire - February 8, 2011) - First Western Capital Management (www.fwcapmgmt.com), a distinguished provider of diversified fixed income and total return strategies to North American foundations, endowments, and pension plans, has released a research report on the benefits of a short-duration high-yield bond strategy in the current market environment.
The report -- Short But Sweet: Opportunities In High Yield -- describes how the asset class, with its attributes of low correlation to other asset classes, high current income, and the potential for capital gains, possesses the ability to perform well in a rising-rate environment.
"The high yield asset class has produced excellent risk adjusted returns over the past 20 years, outpacing the S&P 500 at approximately half the volatility. The high yield short duration strategy offers attractive returns at even lower principal risk and a higher Sharpe Ratio," says Steven Michaels, Managing Director of High Yield for First Western Capital Management.
"In the current climate of extremely low benchmark interest rates, the goal of maximizing yield without undue duration and credit risk may appear quite challenging," says Barry Julien, Managing Director of Fixed Income for First Western Capital Management. "We would argue a short-duration high-yield strategy actually enables investors to attain both of these goals."
Mr. Julien, who along with his fixed income team was recognized last year by PSN as a "Top Guns Manager of the Decade" in the Core Fixed Income category, co-authored the paper with Mr. Michaels.
Short But Sweet: Opportunities In High Yield is available on First Western Capital Management's website, www.fwcapmgmt.com.
The research report is the latest addition to a body of thought pieces produced by First Western Capital Management's investment team. Earlier this month, the firm released The State of our States and Municipalities, a time-sensitive report on the condition of the municipal bond market.
About First Western Capital Management
First Western Capital Management (FWCM) is the institutional investment management subsidiary of First Western Financial, Inc., a financial services holding company recently ranked by Inc. magazine as one of the fastest growing companies in the U.S. Los Angeles-based FWCM, with well-regarded expertise in fixed income, total return, and opportunistic strategies, focuses on delivering superior investment results for institutional, sub-advisory, and high net worth clients. The FWCM investment team manages more than $1.3 billion for clients, and together with affiliated First Western entities are responsible for over $4.1 billion in assets. For more information, please visit fwcapmgmt.com or call 303.531.8100.
Contact Information:
For more information, please contact:
Warren Olsen
First Western Capital Management
(303) 531-8100