Yield Capital Investors
Risk
A practical framework focused on the probability and magnitude of permanent capital impairment.
Risk framework
Protecting capital begins before investment.
Risk management is embedded in research, valuation, portfolio construction and ongoing review. It is not treated as a separate process applied after a position is established.
Fundamental risk
Industry structure, competitive position, customer concentration, execution and the durability of business economics.
Financial risk
Leverage, refinancing exposure, cash-flow conversion, liquidity and balance-sheet flexibility.
Valuation risk
The assumptions embedded in the price and the margin available for error or changing conditions.
Portfolio risk
Position size, liquidity, correlation, concentration and sensitivity to shared economic drivers.