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In that same interview, I predicted: "I think that we will see a few publicly traded 'yield cos' (yield companies) in solar listed in 2014". In other words, I predicted that 2014 would bring IPOs for two or more companies investing in solar and offering attractive dividend yields.
The final transformation of SunEdison began the following year when it created the first of two publicly traded subsidiaries called yield companies, or "yieldcos".
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That should occur when the economy is improving, which should be good news for high-yield companies.
"Woodford's stock selection has been particularly strong in smaller growth companies and large high-yield companies," said Laith Khalaf, an analyst at Hargreaves Lansdown.
Related: Neil Woodford quits Invesco Perpetual in shock departure "Woodford's stock selection has been particularly strong in smaller growth companies and large high-yield companies," said Laith Khalaf, an analyst at Hargreaves Lansdown.
Then, the underlying credit fundamentals of high-yield companies were better than they are now, according to Ravi Suria, the convertible bond analyst at Lehman Brothers who became famous for his in-depth and scathing report on Amazon.com last June (from which its stock never recovered).
First Round has been alerted to high-potential investments from a wide variety of sources, including Twitter and in-person pitch gatherings such as "Demo Days". These nontraditional sources yielded companies that outperformed referred companies by 58.4%.
To dramatically improve innovation yields, companies must believe that innovation outputs (new processes, products, services, and business models) are less than perfectly correlated with innovation inputs (cash and talent).
"They are better credits than high-yield companies," he says.
When the Fed tightens the screws, banks tighten their standards for lending to high-yield companies.
Another selects high-yield companies but defines yield in a way that will befuddle coupon clippers.
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Justyna Jupowicz-Kozak
CEO of Professional Science Editing for Scientists @ prosciediting.com