Destra Insights

April saw the Destra Credit Strategies Indicator (“CSI”) deliver an overall negative result of -0.86% on average with 12 of 18 sub-strategies declining on a total return basis for the month. This was a far cry from March, when the CSI was up a positive +1.33% on average and 17 of 18 categories were green!

Special situations credit investing is a sophisticated institutional strategy focusing on unique credit opportunities in companies facing stress, distress, restructuring, bankruptcy, or other dislocations.

Through the first two months of 2024, Intermediate Treasuries are off some 85bps on return and the Bloomberg US Agg index is off even more, at -1.68%. These two hallmark benchmarks represent the biggest portions of the bond investing landscape and if you only used these as a gauge you might say that fixed income investing was off to another poor year.

As we navigate the complexities of the financial landscape in 2024, the credit markets have presented us with a fascinating start, full of unexpected twists and turns. The Destra Credit Strategies Indicator has been at the forefront, meticulously tracking the pulse of 18 diverse sub-strategies in credit investing.

A comprehensive analysis of the credit market's performance over the past year. It highlights the exceptional performance of Destra's Credit Strategies Indicator (CSI), which saw all its eighteen subcategories achieving positive growth,

November was a remarkable month in the credit markets, with the Destra Credit Strategies Indicator (CSI) flashing solid green across all 18 categories.

We recently interviewed the portfolio team at Granahan Investment Management for an update on the Destra Granahan Small Cap Advantage Fund. In this update, the team covers the market conditions in Q1 2022, the performance of the Fund, and what to expect coming up in Q2 and beyond.

Log jams and bottlenecks may impact what’s under your Christmas tree this year. And some worry that could be negative for the economy and markets. But for every action there is a reaction and for every situation there is an investment opportunity.

An important key to enhancing portfolio performance and reducing risk is through more effective portfolio diversification. As the chart below shows, this can be achieved by combining asset classes that exhibit low correlations to one another.

In today’s age of digital technology, we are faced with a never-ending stream of bad news that often creates high levels of market uncertainty. The good news is that it creates a continuous stream of opportunities for astute bond investors to capitalize on (1) the economic cycle and (2) surprise events.