| Drew Kanaly |
Houston-based Kanaly Trust Co. is looking at high yield, though it will stay at the top part of the spectrum, concentrating more on single-A paper. "It's the first time in my memory we are looking at some high yield," Drew Kanaly, chairman, said. "The management of high yield has come to age. We can make it fit even in a conservative portfolio." The firm will be going to a mutual fund or ETF to pick the credits because it will be a small part of its portfolio. The firm has $1.8 billion in assets and Kanaly said it will try and do some high yield because it can help returns. "If you look at bonds, there's not a whole lot going on yield wise," he said. It is currently using the Buffalo High-Yield Fund. He said that if high yields become more popular and prevalent, the firm might consider hiring a high-yield manager.
The firm is very short on durations, right now looking at three to five years and Kanaly anticipates it will stay like that until he sees the 10-year Treasury rise. Its benchmark for high yield is the Credit Suisse High-Yield Bond index.
