Cohanzick Management, LLC
427 Bedford Road, Suite 230
Pleasantville, NY 10570
Institutional Investor July 6, 2016
Although deal volume has slipped this year, acquisitions remain the easiest way to boost revenue in a low-growth environment. U.S. merger and acquisition activity has slowed down this year amid turmoil in capital markets and heightened regulatory scrutiny of big deals. continue reading
News of Yum China Spinoff is Bad for Bondholders
Barron's October 20, 2015
Yum Brands’ (YUM) announced Tuesday morning it is spinning off its China operations into a separate company. It’s stock traded higher.
But there are a few problems with this plan for investors in Yum bonds — not the least of which is the fact that China’s economy is slowing and Yum’s performance there has disappointed this year.
The bigger problem for bondholders is that the move will allow Yum to load up on debt. The play is for the new company, which will be called YUM! China, to hold exclusive rights to the KFC, Pizza Hut, and Taco Bell brands. It will theoretically be valued at a higher rate of growth than it would when it was part of Yum Brands.r this week, it's hard to see how Yum! Brands can keep shrugging off calls to split apart its U.S. and China businesses. continue reading
Put China Spinnoff on Yum's To-Do List
Bloomberg October 9, 2015
After this week, it's hard to see how Yum! Brands can keep shrugging off calls to split apart its U.S. and China businesses. continue reading
David Sherman Appears on CNBC's Closing Bell
CNBC September 17, 2015
A Surfire Strategy to Keep Calm and Make Money in this Crazy Market
MarketWatch August 30, 2015
The seesawing stock market may finally prompt investors to dedicate more money toward high-dividend-paying companies, bonds and real estate investment trusts.
After all, some form of income strategy is better for many long-term investors, even those who aren’t retired or close to retirement.
There certainly is an urgency for safer investing, as there may be more trouble ahead for stocks. For one, companies have lowered earnings estimates for the second half of the year. And a range of other worries — China’s slowing economy, rising official interest rates by the Federal Reserve — are weighing on investors’ minds. On Wednesday, the S&P 500 Index SPX, +1.52% rallied 3.9%, the biggest gain in four years, putting an end to an 11% decline in the six days through Tuesday. Stocks rose again in early trading Thursday.As far as credit markets are concerned, U.S. stock investors have lost touch with reality. continue reading
S&P 500 Flouts History With Bonds That Often Ends Badly
Bloomberg August 10, 2015
As far as credit markets are concerned, U.S. stock investors have lost touch with reality.
Thats's seen in the extra yield bond investors demand over Treasuries. The spread has expnaded by 0.48 percentage point from a year ago, the most since 2012, even as the Standard & Poor's 500 Index rallied. continue reading
Hot dogs can help offset the Federal Reserve's interest-rate increases
MarketWatch July 20 2015
Despite fear mongering, rising interest rates may not be such a bad thing for income-seeking investors, provided they are careful when choosing securities.
With Federal Reserve Chairwoman Janet Yellen saying the central bank will raise interest rates before the end of the year, there’s no shortage of warnings that higher rates will push down prices of bonds and other income-producing vehicles. For bonds, market values must decline as interest rates rise, so that yields will match those of newly issued bonds. And the longer the term for the bond, the more its price will fall. For high-yield bonds, also known as junk bonds, volatility can be even worse. continue reading
Cohanzick Fund Aims to Profit from Financial Engineering
Institutional Investor July 24, 2015
Financial engineering is the order of the day for many publicly held companies as they pursue stock buybacks and dividend increases to reward shareholders. continue reading
McDonald’s Is Busy Selling Bonds
Barron's Income Investing May 18, 2015
David Sherman Appears on CNBC's Closing Bell
CNBC May 14, 2015
Monsanto's Bid for Sygenta Spells Trouble for Bonds
Barron's Income Investing May 11, 2015
Bond investors can’t be too happy with Monsanto (MON) these days. Last Friday the company made a $45 billion cash and stock offer to buy Syngenta (SYT). But while its stock rose 3% that day, Monsanto bondholders were left worrying about the additional debt it would have to take on to come up with the cash for the deal. continue reading
Skeptics Emerge as AT&T Completes Huge Bond Deal
Barron's Income Investing April 23, 2015
AT&T (T) successfully sold $17.5 billion worth of bonds Thursday. It was the third largest corporate debt offering, behind a $49 billion deal by Verizon Communications (VZ) in 2013 and a $21 billion bond sale from Actavis Plc (ACT) in early March. continue reading
Record AT&T Bond Sale Gives $195 Million Windfall to Investors
The Washington Post April 24, 2015
Landing an allocation in the third biggest corporate debt offering on record is handing investors in AT&T Inc. a $195 million windfall as the prices of the bonds gain in trading.
All bonds in Thursday’s $17.5 billion six-part deal traded above their offering prices, boosting the securities’ market value by $195 million, or 1.1 percent, at 1:35 p.m. Friday in New York, according to data from Trace, the bondprice reporting system of the Financial Industry Regulatory Authority. The U.S. wireless provider’s $5 billion of 3.4 percent bonds maturing in May 2025, which were sold Thursday at 99.7 cents on the dollar, traded at 100.6 cents on the dollar. continue reading
7 Companies That Could Be Ready to Issue Dividends or Share Buybacks
The Street 2/18/2015
With shareholder activists pressuring more companies to boost their dividends or buy back stock, should investors be jumping on the bandwagon?
In recent years, shareholder activists have pushed companies such as Microsoft (MSFT) , Apple (AAPL) and Cisco (CSCO) into returning some of their mountains of cash to shareholders. Because dividends and share buybacks tend to make a stock more attractive, figuring out which companies could be targeted next might be a smart investment strategy.
Bruce Falbaum, principal at investment adviser Cohanzick Management, seeks out situations like these. While he isn't an activist himself, he bets on companies he thinks will realize that their capital isn't being "optimized." continue reading
More Activists Are Fine With Management-They Just Want the Cash
The Street 2/17/2015
When Carl Icahn targets a company, he's usually trying to shake up management. But with Apple (AAPL - Get Report) , the billionaire activist investor has been demanding the tech giant return more of its $178 billion in cash to shareholders.
"I think Tim Cook is the ideal CEO for Apple," Icahn said in an interview. "But I continue to believe, with a company as undervalued as Apple and with $178 billion in cash, a major stock buyback is a 'no brainer.' continue reading
Junk Bond Market Turns Negative
Wall Street Journal 12/17/2014
Pace of the Price Declines Has Atrracted Some Bargain-Seekers Back to the Market –WSJ…The WSJ reported thatTrading turmoil has dragged junk-bond returns into the red for the year, according to Barclays PLC data, the latest milestone in a second-half slump that has started to entice some buyers.The U.S. Corporate High Yield index, which tracks the below-investment-grade bonds, lost 0.3% this year through Tuesday’s close.That is the first time the market has turned negative since 2011, when the debt rallied back to end the year up 4.98%. The last time junk bonds finished the year in negative territory was in 2008, when junk bonds lost 26% amid a broad flight from risk in the financial crisis. Continue Reading
High-Yield Bond Funds See $1.9 Billion Outflow in Latest Week
Wall Street Journal 12/11/2014
Junk bond funds see largest outflows since early Oct –WSJ…The WSJ reported that investors continued to withdraw money from high-yield bond funds in the latest week, as they experienced their biggest outflows since early October.Data from Lipper showed investors pulled nearly $1.9B in the latest week, the largest weekly decline since $2.3B was withdrawn in the week ended 1-Oct. It also adds to the $859M of outflows in the week ended 3-Dec.The article noted that investors are now demanding 5.02 percentage points over comparable Treasurys to own high-yield debt, the widest spread since June 2013 during the "taper tantrum".Continue Reading
Nexus Fund Launch
Cohanzick Management, LLC 10/15/2014
Short-biased credit fund targets mispricing between equity yields and debt funding costs...Continue Reading
Grant's Interest Rate Observer 11/29/2013
Investors lack income, the economy lacks oomph and businesses lack growth. Solution? More corporate bonds and higher corporate leverage. Result: A not-so-slow-moving degradation in the quality of investment-grade debt.In the corporate bond market, as in many another, it's back to the bubbly future...Continue Reading
Some new funds worth considering
USA Today 10/17/2013
Most mutual funds preach the virtues of long-term investing, despite the fact that most actively managed funds trade stocks at a frenetic rate. The average large-company blend fund, for example, replaces about 64% of its portfolio each year, according to Morningstar... Continue Reading
Riverpark Introduces Riverpark Strategic Income Fund
RiverPark Advisors, LLC has launched the RiverPark Strategic Income Fund, an open-end mutual fund that seeks to deliver high current income and capital appreciation consistent with conservation of capital, it was announced today by the firm. The new fund will be managed by Cohanzick Management, which also acts as subadvisor on the RiverPark Short Term High Yield Fund which recently closed to new investors and has gathered more than $850 million in assets since its launch in 2010. ... Continue Reading
Barron's 03/21/2013 A Top-Notch High-Yield Fund
Institutional Investor 08/12/2012 Mix ETFs and High-Yield Bonds? Result: Extreme Volatility
Wealth Management 04/01/2012 "Bond Bubble to Burst?"
Wall Street Journal 02/11/2012 The New Bond Market
Barrons 12/24/2011 Volatility Minces Return
Kiplinger 11/15/2011 Your Guide to Bond Investing
Forbes 10/21/2011 For Fixed Income Investors, Another Way to Beat Treasurys
Investment News 07/06/2011 Short-term junk ideal for navigating long-term risk: RiverPark's Sherman