DSU - Some Bond Market Charts - Corporate High-Yield Is Fully Valued

• A normal corporate high-yield allocation in client accounts if you look across model portfolios is roughly 10%-15%. The clients that can handle that risk have been closer to 20% (or more) for most of 2020, but that overweight is now being reduced.
• With most macroeconomic and forecasting models expecting 6% GDP growth in 2021 (and some even higher than that), there is a LOT of good news baked into corporate credit spreads.
• Although I dislike the term, you could call owning corporate high yield as an asset-class a "no-brainer' the last year given all the Fed liquidity, but clients are now seeing their taxable high-yield weight being reduced.

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