Putnam High Income Securities Fund (PCF) - NYSE
  • Fri, Apr. 22, 11:30 AM
    • After a tough start to the year, junk bonds are on a tear - now having returned 6% YTD, with the overall yield sliding to just 6.9% from 10% earlier in 2016.
    • The bigger action has been in the junkiest of the junk sectors, with paper rated CCC having returned a full 9% YTD, including that of low-grade energy companies having returned 10%.
    • The term "Goldilocks" has re-entered the lexicon, with bulls saying we've got an economy strong enough to prevent defaults, but not so strong as to warrant tighter monetary policy. The oil price crash? Yesterday's news, they say.
    • Marty Fridson says high-yield has returned to "extreme overvaluation" territory. Jeff Gundlach, however, calls junk bonds still somewhat cheap, though noting the high proportion of the lowest-quality paper being issued of late.
    • Bottom line, writes Robin Wigglesworth in the FT: The rally should continue if for no other reason than the world remains yield-starved.
    • ETFs: HYG, JNK, HIX, DHY, HYLD, PHT, EAD, HYT, JQC, CIK, DSU, HHY, SJB, NHS, ACP, PHF, MCI, FHY, KIO, ANGL, ARDC, VLT, CIF, AIF, MPV, MHY, PCF, DHG, IVH, HYLS, JSD, UJB, GGM, CJNK, QLTC
    • Now read: Pessimism Recedes (April 21)
    | Fri, Apr. 22, 11:30 AM | 5 Comments
  • Tue, Apr. 12, 12:48 PM
    | Tue, Apr. 12, 12:48 PM | 1 Comment
  • Mon, Apr. 11, 3:23 PM
    • "Simply put, clients were not being compensated for credit risk," says the team of Matthew Mish and Stephen Caprio.
    • A slowdown in U.S. growth could be the catalyst that pricks the bubble, they say as speculative credits find it even more expensive to borrow.
    • It could be happening now as high-yield issuance is lower by 53% this year, and the lowest-grade paper (CCC ratings) yields 15.2% even after the big rally of the past couple of months.
    • If they're correct, the two say spreads to Treasurys could more than double to 16.4%. "Investors were herded into lower-quality credit risk for a yield pick-up of a couple hundred basis points ... But the fundamental problem is that the default risk is exponential, not linear in these securities."
    • ETFs: HYG, JNK, HIX, DHY, HYLD, PHT, EAD, HYT, JQC, CIK, DSU, HHY, SJB, NHS, ACP, PHF, MCI, FHY, KIO, ANGL, ARDC, VLT, CIF, AIF, MPV, MHY, PCF, DHG, IVH, HYLS, JSD, UJB, GGM, CJNK, QLTC
    | Mon, Apr. 11, 3:23 PM | 18 Comments
  • Wed, Mar. 23, 9:10 AM
    • There's typically very little relationship between the returns on non-energy junk bonds and the price of oil, but the correlation between the two has soared of late to an all-time high of nearly 0.65 (with 1.00 being an exact match), according to Deutsche Bank.
    • Non-energy junk bonds make up about 88% of the high-yield market, according to BAML, which says the tight linkage today means investors aren't paying enough attention to growing risks among junk issuers. Among them: As the price of oil rises, junk bond prices improve even as costs high-yield issuers like manufacturers and transportation companies.
    • ETFs: HYG, JNK, HIX, HYLD, DHY, PHT, EAD, HYT, JQC, CIK, DSU, HHY, SJB, PHF, NHS, FHY, ACP, MCI, KIO, VLT, ARDC, ANGL, CIF, AIF, MHY, PCF, MPV, DHG, HYLS, IVH, JSD, UJB, GGM, CJNK, QLTC
    | Wed, Mar. 23, 9:10 AM | 6 Comments
  • Fri, Mar. 18, 9:29 AM
    • With another week of inflows ($2.01B last week), U.S. high-yield funds have now recorded five straight weeks of inflows since what may or may not be a major bottom on Feb. 11. Over just the last four weeks, funds have drawn in $11.52B, the largest-ever one-month gain for that asset class, according to BAML.
    • BAML's Michael Contoupolos, however, pulls out the yellow flag: "The fundamental backdrop has not changed and defaults are in fact increasing ... These inflows are an over-reaction to transitory tailwinds ... The recent rally has limited staying power."
    • ETFs: HYG, JNK, HIX, HYLD, DHY, PHT, EAD, HYT, JQC, CIK, DSU, HHY, SJB, PHF, NHS, FHY, ACP, MCI, KIO, VLT, ARDC, ANGL, CIF, AIF, MHY, PCF, MPV, DHG, HYLS, IVH, JSD, UJB, GGM, CJNK, QLTC
    | Fri, Mar. 18, 9:29 AM | 13 Comments
  • Fri, Mar. 11, 8:35 AM
    • U.S. corporate investment-grade funds saw the most inflows in a year in the week ended March 9, while loans funds had their first inflows since mid-2015, Lipper said late yesterday.
    • IG funds saw inflows of $2.18B vs. outflows of $761M in the previous week. Most inflows since Feb. 2015.
    • Loans funds saw inflows of $55M vs outflows of $357M in the prior week. This marks the first week of inflows since July 2015.
    • Corporate high-yield funds saw inflows of $1.8B, vs. inflows of $4.97B last week. This was the fourth straight week of inflows.
    • U.S. government Treasury funds saw outflows of $326M vs. outflows of $2.08B in the previous week. The second straight week of outflows.
    • U.S. government mortgage funds had inflows of $547M vs. inflows of $425M a week ago.
    • Muni funds had inflows of $518M vs. inflows of $212M a week ago. 23rd straight week of inflows.
    • ETFs: HYG, JNK, LQD, HIX, HYLD, DHY, PHT, EAD, HYT, VCSH, JQC, VCLT, CIK, VCIT, DSU, CORP, HHY, SJB, CSJ, PHF, NHS, FHY, ACP, MCI, KIO, VLT, CIU, ARDC, ANGL, CSI, CIF, AIF, MHY, PCF
    | Fri, Mar. 11, 8:35 AM | 1 Comment
  • Fri, Mar. 4, 7:42 AM
    | Fri, Mar. 4, 7:42 AM | 9 Comments
  • Wed, Mar. 2, 10:54 AM
    | Wed, Mar. 2, 10:54 AM | 7 Comments
  • Fri, Feb. 26, 11:13 AM
    • In another sign of the difficulties lower-rated credits are having with borrowing, Goldman Sachs (GS +2.1%) is having a hard time moving $2B in paper backing the buyout of Solera Holdings, reports the WSJ.
    • Solera late last year agreed to an LBO to Vista Equity Partners for $6.5B, including debt.
    • The bonds backing the sale carry an especially weak Caa1 rating from Moody's, and it's in these lower-rated tranches where the worst of the high-yield carnage has taken place. Demand "is really nonexistent now," says one portfolio manager.
    • Goldman had hoped to unload the Solera bonds at a price to yield about 10%, but by midday yesterday had only found buyers for about half of the paper, and pricing had moved above 11%.
    • As painful as it is for borrowers, it's also so for the banks which earn big fees from lending commitments - great when the bonds are easy to move, but a profit eater when the stuff has so sit on the books for very long. Goldman, in particular, has sought to boost market share in this part of the business against traditional powerhouses like Bank of America (NYSE:BAC) and JPMorgan (NYSE:JPM).
    • ETFs: HYG, JNK, HIX, HYLD, DHY, PHT, EAD, HYT, JQC, CIK, DSU, HHY, SJB, PHF, NHS, FHY, ACP, MCI, KIO, VLT, ARDC, ANGL, CIF, AIF, MHY, PCF, MPV, DHG, HYLS, IVH, JSD, UJB, GGM, CJNK, QLTC
    | Fri, Feb. 26, 11:13 AM | 3 Comments
  • Fri, Feb. 19, 3:46 PM
    • Eleven U.S. high-yield bond defaults have occurred this month, according to Fitch - the highest one-month count since September 2009.
    • The energy default rate is expected to finish above 9% in February (from 7.2% last month), and the exploration and production rate above 14% (from 11.3%).
    • Currently 41% of outstanding high-yield energy bonds are bid below 50 cents.
    • The mining sector doesn't look any better, with Arch Coal's January bankruptcy filing pushing the default rate to nearly 14% - the highest since 2002.
    • While energy and metals/mining have just $5.1B in debt maturing this year, then number soars to nearly $20B in 2017.
    • ETFs: HYG, JNK, HIX, HYLD, DHY, PHT, EAD, HYT, JQC, CIK, DSU, HHY, SJB, PHF, NHS, FHY, ACP, MCI, KIO, VLT, ARDC, ANGL, CIF, AIF, MHY, PCF, MPV, DHG, HYLS, IVH, JSD, UJB, GGM, CJNK, QLTC
    | Fri, Feb. 19, 3:46 PM | 6 Comments
  • Thu, Feb. 18, 12:30 PM
    • Moody's Liquidity Stress Index rises to 8.1% as of mid-February from 7.9% a month earlier. Energy, of course, is behind the move, with the oil & gas LSI rising to 24.4% - just under the record 24.5% hit in March 2009.
    • The LSI measures the number of companies carrying the agency's lowest liquidity rating, SGL-4.
    • "While contagion from the commodity rout is not widespread at this point, with most sector LSIs not pointing to dangerous conditions in 2016, 16 of the 21 sector LSIs we track increased over the last year,” says the report.
    • Moody's expects junk defaults to rise to a six-year high of 4.7% by next January from the current 3.1%. The average since 1990 is 4.7%.
    • ETFs: HYG, JNK, HIX, HYLD, DHY, PHT, EAD, HYT, JQC, CIK, DSU, HHY, SJB, PHF, NHS, FHY, ACP, MCI, KIO, VLT, ARDC, ANGL, CIF, AIF, MHY, PCF, MPV, DHG, HYLS, IVH, JSD, UJB, GGM, CJNK, QLTC
    | Thu, Feb. 18, 12:30 PM | 3 Comments
  • Tue, Feb. 2, 2:28 PM
    | Tue, Feb. 2, 2:28 PM | 12 Comments
  • Mon, Feb. 1, 2:26 PM
    • U.S. junk bond defaults should hit 4.4% this year, says Moody's - up from 3.2% in Q4 and the highest level since 2010.
    • It's all about commodities/energy, with 9 of 15 non-financial defaults in Q4 from oil and gas companies.
    • Non-commodity defaults in 2015 were 24, up just three from 2014's level. While just edging higher, liquidity pressures in these sectors are on the rise, says Moody's, suggesting the possibility of an even sharper rise in broader defaults should economic growth slow, or credit pressures stemming from energy rise.
    • ETFs: HYG, JNK, HIX, HYLD, DHY, PHT, EAD, HYT, JQC, CIK, DSU, HHY, SJB, NHS, PHF, ACP, FHY, ARDC, MCI, VLT, KIO, CIF, AIF, MHY, ANGL, PCF, DHG, MPV, IVH, HYLS, JSD, UJB, CJNK, GGM, QLTC
    | Mon, Feb. 1, 2:26 PM | 7 Comments
  • Fri, Jan. 15, 3:18 PM
    • The BAML High Yield Energy Bond Index yesterday closed at a yield to worst of 17.43% (and it's surely headed higher today). That level is the worst since the bank began putting the index together 20 years ago, according to Marty Fridson.
    • The prior record was 17.05% posted during the gloomiest times of the financial crisis, but as Fridson points out, energy high yield then was trading in line with everything else. Today, energy is an outlier.
    • On a day when the 10-year yield is lower by six basis points to 2.03%, HYG and JNK are down 1.5%.
    • ETFs: HYG, JNK, HIX, HYLD, DHY, PHT, EAD, HYT, JQC, CIK, DSU, HHY, SJB, NHS, PHF, ACP, FHY, ARDC, MCI, VLT, KIO, CIF, AIF, MHY, ANGL, PCF, DHG, MPV, IVH, HYLS, JSD, UJB, CJNK, GGM, QLTC
    | Fri, Jan. 15, 3:18 PM | 8 Comments
  • Fri, Jan. 15, 8:50 AM
    • Losses are deepening in the market for low-rated energy debt, as investors worry that the prolonged slump in commodity prices and slowing economic growth will push many companies into default, WSJ reports.
    • Bonds among the biggest losers yesterday were from WPX Energy (NYSE:WPX) and Oasis Petroleum (NYSE:OAS), each down ~12% from the previous day, according to the report; a 2019 bond from OAS traded at $0.53 cents on the dollar, and a WPX bond maturing in 2023 traded at $0.655.
    • The losses come after many investors already have exited some larger oil and gas producers in the junk market; for example, a 2023 bond from Chesapeake Energy (NYSE:CHK) is trading at $0.285, roughly the same as in mid-December.
    • Energy sector junk bond losses already are near 4% YTD, and the spread vs. U.S. Treasurys hit 14 percentage points on Wednesday, the highest since December 2008, according to Barclays.
    • ETFs: HYG, JNK, HIX, HYLD, DHY, PHT, EAD, HYT, JQC, CIK, DSU, HHY, SJB, NHS, PHF, ACP, FHY, ARDC, MCI, VLT, KIO, CIF, AIF, MHY, ANGL, PCF, DHG, MPV, IVH, HYLS, JSD, UJB, CJNK, GGM, QLTC
    | Fri, Jan. 15, 8:50 AM | 17 Comments
  • Wed, Jan. 13, 3:57 PM
    • Following the collapse of the Third Avenue Focused Credit Fund (MUTF:TFCVX) last month, the SEC has launched a review of the entire junk-bond fund complex, reports Reuters.
    • The agency "sent detailed requests" to mutual fund and ETF managers following the Third Avenue liquidation plan in which investors could wait a year or more to get their money.
    • High yield's having a particularly ugly day today as equity markets wash out. HYG -1.2% and JNK -1.4% on a day when the 10-year Treasury yield is lower by four basis points to 2.06%.
    • ETFs: HYG, JNK, HIX, HYLD, DHY, PHT, EAD, HYT, JQC, CIK, DSU, HHY, SJB, NHS, PHF, ACP, FHY, ARDC, MCI, VLT, KIO, CIF, AIF, MHY, ANGL, PCF, DHG, MPV, IVH, HYLS, JSD, UJB, CJNK, GGM, QLTC
    | Wed, Jan. 13, 3:57 PM | 15 Comments
Company Description
The Fund seeks high current income as its primary investment objective and capital appreciation as a secondary objective. It invests mainly in fixed-income securities, including debt instruments and convertible securities, rated below investment grade, whi
Sector: Financial
Industry: Closed-End Fund - Debt
Country: United States