Kris Konrad, Managing Partner and Portfolio Manager at Piton Investment Management joins us  to give an inside look at the Structured High Income Strategy. 

Designed for today’s volatile market environment, this SMA leverages structured notes based on single-name equities to generate attractive yield. Kris breaks down how this approach differs from traditional high-yield strategies and why it’s gaining traction among investors seeking income without sacrificing credit quality.

What’s Ahead:

• How the Structured High Income Strategy capitalizes on market volatility
• How structured notes are able to offer higher yields as volatility rises
• The role of single-name equities in enhancing return potential
• Key differences between this strategy and traditional high-yield ETFs like HYG and JNK
• Piton’s high-conviction, custom-structured approach to fixed income investing

Read the full episode transcript below:

David Townsend:
I’m joined today by Kris Konrad, a portfolio manager for Piton Investment Management.

Kris Konrad:
Thanks for having me.

David Townsend:
We’re talking about the Structured High Income Strategy today. Before we jump into that, Kris, do you mind giving our viewers a little bit of background about yourself?

Kris Konrad:
Sure. I’m Kris Konrad. I’m one of the founding partners and also serve as managing partner at Piton Investment Management. As David mentioned, I’m the head portfolio manager for the Structured High Income Strategy.

David Townsend:
You’re one of our go-to experts on structured notes and structured products, so we’re always thankful for your time. Let’s dive in. You manage the Structured High Income Strategy—it’s an SMA and a really interesting product, cutting-edge in terms of structured investments. Why is it compelling right now? Can you break it down for us?

Kris Konrad:
Absolutely. One thing that makes the Structured High Income Strategy especially compelling today is its ability to harness increased market volatility. Volatility is definitely top of mind for everyone, and structured income notes derive their yield from selling options on their underlying constituents. So, as market volatility increases, the pricing on income notes improves—meaning higher coupons for investors.

David Townsend:
That makes sense. It’s probably one of the reasons your clients are drawn to this. Piton has a strong track record in custom fixed income solutions, but thinking specifically about this strategy, what are some of the challenges it helps address for investors?

Kris Konrad:
Primarily, the strategy focuses on yield. It’s an actively managed portfolio of income notes structured primarily off single-name equities. So rather than indexing or using broad baskets, we’re building around well-known companies. This differentiates the strategy from others that are based on indices.

David Townsend:
There’s no shortage of financial products out there—and you’ve helped launch several successful ones. What makes this one stand out in today’s market?

Kris Konrad:
What makes it unique is that it’s built on single-name equities—companies with a high degree of implied volatility. We apply our analysis to identify names we have high conviction in and use that exposure to create a high-income asset.

David Townsend:
Off-script for a second—I always like to throw in a curveball. This isn’t your first rodeo, so if there’s one thing investors aren’t talking about right now that they should be, what would it be?

Kris Konrad:
We’ve laid out for clients that we expect 2025 to be a volatile year—and that’s already started to play out. As it relates to this strategy, what makes it even more compelling is that, while many investors still look to traditional high-yield bonds—like those found in HYG or JNK ETFs—those funds often include exposure to companies with below-investment-grade credit.

What I love about our strategy is that we have the ability to build a portfolio that can yield nearly two times what HYG or JNK are offering—without relying on sub-investment-grade credit exposure.

David Townsend:
That’s a powerful differentiator. Kris, as always, we appreciate your time.

If folks want to learn more, what’s the best way to get in touch?

Kris Konrad:
They can visit our website at pitonim.com or connect through any of the representatives at Halo.

David Townsend:
And you’re available for one-on-ones, right?

Kris Konrad:
Of course. Always happy to have those conversations.

David Townsend:
Thanks again, Kris. Great having you on.

Kris Konrad:
Thank you.

 Please see our Halo Disclosure Page for important disclosures.

An investment in Structured Notes may not be suitable for all investors. These investments involve substantial risks. The appropriateness of a particular investment or strategy will depend on an investor’s individual circumstances and objectives.

Content and any tools discussed are provided for educational and information purposes only. Halo Investing makes no investment recommendations and does not provide financial, tax, or legal advice. Any structured product or financial security discussed is for illustrative purposes only and are not intended to portray a recommendation to buy or sell a particular product or service.