BSJT - High Yield: It's The Yield That Matters

2024-08-03 06:10:00 ET

Summary

• Despite the focus on credit spreads, yield has proven to be a more reliable indicator of high yield market attractiveness.
• Many investors look at credit spreads as the hallmark indicator for when to enter or exit credit markets.
• The asset class continues to be positioned to potentially deliver long-term returns at these yield levels.

Quick takes on capital markets

Despite the focus on credit spreads, yield has proven to be a more reliable indicator of high yield market attractiveness. With a strong correlation between starting yield and five-year forward returns, and a historically high-yielding environment coupled with low projected default rates, the high yield asset class is well-positioned to potentially deliver attractive long-term returns....

For further details see: