Stirland, Sarah
We think it makes sense to take risk if you're being compensated well, but that's not the case today with high-yield bonds. There's very little room for spreads to fall, which can limit the potential outperformance, but plenty of room for them to rise should the economic outlook ...
The relatively high returns of high-yield bonds are also likely to be attractive to investors in 2024. Valuations are attractive in view of the rating quality and the expected moderate default rates. Risks for the asset class could arise in the event of a further escalation of the geopolitical...
Fitch’s default rate forecast range for both U.S. institutional leveraged loans and high-yield bonds in 2022. 7% Three-year 2020-2022 cumulative default rate forecast for both the U.S. institutional leveraged loan market and the U.S. high-yield bond market, compared with 15% and 22% fro...
In this episode, Kathy interviews her colleagues Collin Martin and Cooper Howard about the team's midyear fixed income outlook, with a theme of looking beyond Treasuries. The conversation covers investment-grade corporate bonds, high-yield bonds, preferred securities, and the municipal bond market....
Bonds, however, have had a more muted start to the year. Positive returns have been led by riskier and more ‘equity-like’ high yield bonds. High quality Investment Grade (IG) bonds are down slightly as markets have pushed back expectations of the first Fed rate cut to June, as sticky...
We anticipate credit spreads and default rates to remain close to long-term averages. Download Executive Summary 3.7% GLOBAL INVESTMENT GRADE BONDS ANNUALIZED RETURN FORECAST 7.2% GLOBAL HIGH YIELD BONDS ANNUALIZED RETURN FORECAST ABUNDANT YIELDS We largely expect returns across fixed income to ...
EXHIBIT 2: …While Investors Have Also Gotten More Optimistic About the Outlook for Credit, High Yield in Particular U.S. High Yield Implied Default Rate, % Data as at May 24, 2024. Source: Bloomberg. EXHIBIT 3: Risk Assets Have Responded Favorably to the Idea That There Will Be Fewer ...
All else equal, lower policy rates should be positive for risk markets and the economy. Bonds are in a position to offer diversification benefits again," says fixed income portfolio manager Tim Ng. Economic tailwinds will support corporate and high-yield bonds. "Although there are weak spots ...
Lower interest rates in 2024 could spell good news for municipal bonds. Favorable tax policy changes in a presidential election year could also work in favor of municipal bonds.