High-Yield Credit Strategies

Highland is one of the most experienced global alternative credit managers. The firm offers a variety of credit-oriented products and long-only credit strategies that provide exposure to the liquid, high-yield corporate credit market with a focus on bank loans (also known as leveraged loans).

Highland has been investing in high-yield credit since its founding and has been managing commingled funds and separate accounts dedicated to high-yield credit since 2000. Today, Highland operates a multibillion-dollar bank loan portfolio that spans the investment platform. 

Our Approach

As experienced credit investors, Highland takes a value-oriented, long-term investment approach that combines:

Bottom-up fundamental analysis from our large credit research team, focusing on capital preservation through a deep understanding of issuer characteristics, underlying collateral, industry, and competitive forces and structure;

Top-down technical analysis with proprietary sector and risk allocation, linking real-time macro perspectives with portfolio positioning; and 

“Alpha-by-avoidance,” based on our belief that what separates great managers from good managers is how they identify and avoid or sell potential losers.

Investment Strategy

Highland’s long-only strategy provides exposure to the broader below-investment grade corporate credit markets, and targets returns that are intended to exceed benchmarks such as the S&P/LSTA Leveraged Loan Index. This strategy is available via commingled funds, separate accounts, and retail funds.

Customized Solutions

Through separate accounts, Highland can also create customized mandates with investments across all asset classes, including:

  • Bank loans;
  • High-yield bonds;
  • Stressed loans;
  • Distressed credit; and 
  • CLOs.

Contact Us / Learn More

For more information on Highland’s high-yield credit capabilities, please contact InvestorRelations@HighlandCapital.com.