High Yield Bonds
Full Cycle Performance
CAM’s full market cycle performance has a historical advantage over the
index (yellow) while we avoided the down market pain (blue column).
The following chart compares the performance of the weaker quality sector of the market (which we exclude), the Barclays High-Yield Index and Cincinnati Asset Management’s High-Yield Program Composite. The blue column shows the compound return for the years comprising the down market. The Yellow column shows the compound return for the down market and the ensuing rally (a “full market cycle”).
| Compound Return From Jan. 1, 2000-- Dec. 31, 2002 (last recession) |
Compound Return From Jan. 1, 2003-- Dec. 31, 2004 (recovery) |
2005 | 2006 | 2007 | 2008 | 2009 | 2010 | 2011 | Compound Return 2000-2011 Standard Deviation |
|
| Weaker Quality (Barclays CCC ) |
-31.34% | +64.26% | +0.64% | +17.65% | -0.12% | -49.53% | +90.65% | +16.26% | +1.18% | +67.58% 22.37% |
| Universe (Barclays High-Yield Index) |
-2.28% | +41.32% | +2.74% | +11.85% | +1.87% | -26.17% | +58.21% | +15.12% | +4.98% | +131.43% 12.09% |
| CAM High Yield Composite (Gross) |
+13.62% | +28.88% | +2.18% | +8.81% | +3.81% | -19.26% | +37.38% | +13.47% | +5.68% | +115.54% 8.83% |
