This week we chat with Martin Fridson, chief investment officer, Lehmann Livian Fridson Advisors. Fridson is “perhaps the most well-known figure in the high yield world,” according to Investment Dealers’ Digest. His firm is a registered investment adviser based in New York City and Miami, managing investment portfolios for investors across the US.

The Lead Left: Marty, you’ve been at the forefront of high-yield bond research for several decades. You’ve been commenting the new-issue market lately.

Martin Fridson: I gave a talk recently at the Financial Management Association on pricing. The norm is to price a bond deal so there’s a bit of a jump in the secondary market. What’s wrong with a clearing price? Buyers feel it’s a bad deal if it doesn’t trade up. The theory is that the next time the issuer comes to market, investors will say, “That’s a good company because it traded up!”