HYLD News and Press, High Yield From 05/07/23

2023-05-07 04:56:00 ET Summary Higher central bank policy rates have increased the cost of capital for corporations and other issuers of debt. Issuers of bank loans, the very large majority of whom are below-investment grade rated companies, are now facing all-in interest expenses...

2023-05-05 02:45:00 ET Summary As bond yields rose in 2022, investors sought refuge in high-yield bank loans, whose floating coupons are often heralded as an antidote to rising rates. But with conditions shaping up differently in 2023, bank loans may face challenges. We think ...

2023-05-04 02:30:00 ET Summary In a welcome departure from 2022, first quarter returns across the board were positive for the capital markets despite meaningful volatility. We saw a continued outperformance by international stocks versus the US and positive returns for fixed incom...

2023-04-30 07:04:00 ET Summary Fixed income has both historically served as a diversifier and provided protection during times of market turbulence. Investment-grade (IG) index duration was rising before the COVID-19 pandemic, but it has fallen from the peak of 8.45 years at the e...

2023-04-28 04:30:00 ET Summary Canadian corporates succumbed to heightened risk aversion in March, following the banking turmoil, before the swift US and Swiss central bank market interventions calmed markets. Both Canadian and US credit spreads widened during the risk-off episode...

2023-04-22 04:15:00 ET Summary Recent outperformance by large-cap growth stocks may reflect a rotation into long-duration assets as the economy weakens and the turn in the rates cycle approaches. We remain cautious on equities in general, however, given uncertainty about the laggi...

2023-04-20 14:07:00 ET Summary Our entire financial system revolves around credit. This includes the ability to access credit for new loans, and more importantly, the refinancing of existing loans. At the center of any credit contraction are the banks, for it is they who are the p...

2023-04-20 13:09:00 ET Summary We see that the 10s/2s has been inverted since roughly July 2022, while the 10s/3mo (historically the more accurate indicator of recessions) inverted in October. The consensus is that 2023 will witness a decline in corporate earnings as economic acti...

2023-04-20 02:54:00 ET Summary Managers have become less bearish on credit spreads with ~40% expecting spreads to be range-bound in the next 12 months. Inflation and the prospect of recession are the major concerns among managers. At the time of the survey close on Feb. 15, pa...

2023-04-19 03:09:00 ET Summary Aggressive monetary pressure finally saw meaningful impact in the first quarter, in the form of a bank liquidity crisis that required swift intervention by regulators to limit contagion. Markets reacted with volatility and, in anticipation of tighter...