NEW YORK, June 6, 2013 /PRNewswire/ -- In a new report produced for S&P Capital IQ's LCD group, Wall Street leveraged finance specialist, Marty Fridson, offers investors fresh insights and recommendations on industry allocation for active managers. "A major theme that emerges from the analysis is that the classically defensive industries are greatly overpriced," says Fridson, CEO, FridsonVision LLC and consultant to S&P Capital IQ's LCD group. He recommends reducing exposure in Cable & Satellite TV, Containers and Healthcare.
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Citing the traditional difficulty of separating industry effects from ratings-related effects, Fridson has devised what he calls an "equalized-ratings-mix" valuation. Through calculations based on an industry's percentage breakdown by rating and outlook, Fridson arrives at a list of recommendations for investors to reduce and increase current exposure.He cautions that the candidates for overweighting may underperform in the short run. Furthermore, capitalizing on the out-of-favor industries' relative undervaluation may require investing in distressed names. With those caveats, the industries most undervalued relative to their credit outlooks are Metals & Mining, Utility, and Energy. About S&P Capital IQS&P Capital IQ, a part of McGraw Hill Financial (NYSE: MHFI), is a leading provider of multi-asset class and real time data, research and analytics to institutional investors, investment and commercial banks, investment advisors and wealth managers, corporations and universities around the world. S&P Capital IQ provides a broad suite of capabilities designed to help track performance, generate alpha, and identify new trading and investment ideas, and perform risk analysis and mitigation strategies. Through leading desktop solutions such as the S&P Capital IQ, Global Credit Portal and MarketScope Advisor desktops; enterprise solutions such as S&P Capital IQ Valuations; and research offerings, including Leveraged Commentary & Data, Global Markets Intelligence, and company and funds research, S&P Capital IQ sharpens financial intelligence into the wisdom today's investors need. For more information visit: www.spcapitaliq.com. S&P Capital IQ, as well as its affiliates, directors, officers shareholders, employees or agents (S&P Capital IQ) are not responsible for any errors or omissions (negligent or otherwise), regardless of the cause, for any results obtained from the use of the Content described herein, or for the security or maintenance of any data input by the user. The Content is provided on an "as is" basis. S&P Capital IQ and its affiliates DISCLAIM ANY AND ALL EXPRESS OR IMPLIED WARRANTIES, INCLUDING, BUT NOT LIMITED TO, ANY WARRANTIES OF MERCHANTABILITY OR FITNESS FOR A PARTICULAR PURPOSE OR USE, FREEDOM FROM BUGS, SOFTWARE ERRORS OR DEFECTS, THAT THE CONTENT'S FUNCTIONING WILL BE UNINTERRUPTED OR THAT THE CONTENT WILL OPERATE WITH ANY SOFTWARE OR HARDWARE CONFIGURATION. In no event shall S&P Parties be liable to any party for any direct, indirect, incidental, exemplary, compensatory, punitive, special or consequential damages, costs, expenses, legal fees, or losses (including, without limitation, lost income or lost profits and opportunity costs or losses caused by negligence) in connection with any use of the Content even if advised of the possibility of such damages