HYG - Three Trends Impacting HYG And High-Yield Bonds
2024-04-22 14:02:07 ET
Summary
- Default rates for high-yield bonds are rising, reaching 4.5% in December 2023.
- Credit spreads for high-yield bonds are narrowing and currently below historical averages.
- Risk-adjusted returns for high-yield bonds are weak, treasuries look stronger in this regard.
In keeping with my coverage on bonds and bond trends , I thought to write a quick article on recent trends impacting high-yield bonds as an asset class. Three trends stand out.
Default rates are rising, reaching 4.5% this past December. Analysts expect defaults rates to continue rising, but only slightly so....
Three Trends Impacting HYG And High-Yield Bonds