Portfolio Construction typically includes:
- Long positions in high-yield municipal bonds, taxable corporate bonds and preferred securities
- Short positions in corporate bonds, U.S. Government and Agency securities
- The short positions are expected to add to overall return
- Seeks to hedge interest rate risk using U.S. Treasuries, Agency Debt and derivatives
- The Fund utilizes leverage to enhance returns
- Leverage provided through shorting credits or borrowing
The strategy takes advantage of market anomalies and inefficiencies across a wide array of credit risk markets using opportunistic trading strategies and identifies the differential pricing of credit risk across the municipal bond and corporate bond and preferred securities markets
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