BSJT - Looking Past Spreads For Opportunities In High Yield
2024-04-30 04:30:00 ET
Summary
- After strong performance since the fourth quarter of last year, U.S. high yield spreads remain tight.
- Credit spreads are about 30 or 35 basis points wider than their tights in early March.
- Interest rate volatility is less of an issue for high yield, and the carry and total return package in high yield remain attractive.
Originally published on April 25, 2024
By Katie Klingensmith & Bill Zox, CFA
After strong performance since the fourth quarter of last year, U.S. high yield spreads remain tight. However, Portfolio Manager Bill Zox tells Senior Vice President - Investment Specialist Katie Klingensmith that spreads are not the only consideration. He discusses several important factors that are constructive for high yield.
Transcript
Katie Klingensmith - Welcome, everybody, to today's conversation as part of Brandywine Global Around the Curve podcasts. I'm Katie Klingensmith with Brandywine Global, and I'm delighted to be joined by my colleague, Bill Zox. Bill is a lead on a number of strategies that focus on high yield and corporate credit, both in the US and globally. And this is always important, but particularly interesting right now, given that there has been quite a bit of concern that with the success of many credit strategies and spreads very tight. But I think a lot of people are wondering if credit markets and credit investing will be quite as exciting going forward. So with that Bill, that's the elephant in the room. Welcome and get us started. Do you really feel like credit spreads being so tight can justify folks going into this space right now?...
Looking Past Spreads For Opportunities In High Yield