Mike MacBain: Outlook for high yield



Mike MacBain, CIO, East Coast Fund Management, portfolio manager for Arrow Capital's Exemplar Investment Grade Fund and Exemplar Tactical Corporate Bond Fund, discusses his outlook for high-yield bonds, as well as a couple of his firm's favourite holdings.

"We've seen quite a significant back up in credit spreads both in investment grade and high yield bonds (excluding energy), probably more so in investment grade than in high yield, but in both," says MacBain. "We're trading about one and a half standard deviations cheap in terms of credit spreads to where they've traded over a long period of time." He adds, "Our view on credit spreads is that they're pretty productive."

About Mike MacBain
Mr. MacBain is the Founding Partner and Portfolio Manager of Toronto based East Coast Fund Management and has over 24 years of experience in the financial services industry in various trading and senior management roles for leading investment dealers. Most recently he was Managing Director, Head of Global Debt Markets, RBC Capital Markets from 2008 to 2009, where his primary responsibilities included origination, research, underwriting, sales and trading for derivative products including equity, interest rate and credit. In addition, he was also responsible for the fixed income, money market, foreign exchange and alternative asset global product groups. Prior to RBC Capital Markets, he spent 12 years at TD Securities holding senior management roles focused on derivatives, fixed income, money markets and foreign exchange globally. He was the firm’s President from 2002 – 2006. Mr. MacBain received his Bachelor of Arts, Honours Economics and Finance, from McGill University. He was also awarded Canada’s Top 40 Under 40 Business Person in 2004.

outlook for high yield