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Lead-Lag Live

Will Rhind on High Income Pass-Through Securities, Yield Boost Strategies, and Strategic Portfolio Diversification

Feb 20, 2025
Join Will Rhind, an expert in High Income Pass-Through Securities (HIPS), as he unveils the potential of these unique investments for income generation. Discover how HIPS can thrive in inflationary times, tapping into REITs, MLPs, and more. Will explains their tax advantages and resilience during market volatility, including the pandemic. He also discusses innovative yield boost strategies that offer high returns with downside protection. Tune in for insights on balancing risk and reward in today's uncertain economy!
54:59

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Podcast summary created with Snipd AI

Quick takeaways

  • High Income Pass-Through Securities offer higher after-tax income potential and unique tax advantages compared to traditional fixed-income sources.
  • The Yield Boost strategy combines high yield generation with downside protection, enhancing income stability during challenging market conditions.

Deep dives

Understanding Pass-Through Securities

Pass-through securities, as defined in the discussion, are unique investment vehicles that do not pay corporate taxes and are required by law to distribute nearly all their income to shareholders. This structure allows them to provide potentially higher after-tax income compared to traditional equity stocks and bonds. Key types of pass-through securities include Master Limited Partnerships (MLPs), Business Development Companies (BDCs), Real Estate Investment Trusts (REITs), and closed-end funds. Each of these categories serves a different segment of the income-generating landscape, with MLPs typically focused on energy infrastructure, while BDCs lend to smaller businesses.

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