HYLD News and Press, High Yield From 03/17/22

Now, more than two-thirds of managers expect core inflation to stand between 2.5% and 3.5%. Managers sense the end of the deleveraging trend that was observed in 2021. Global leveraged managers believe that the upside remains limited, with no expectation of spread tightening. ...

U.S. non-investment grade credit market is well positioned to navigate the current environment. Issuers have been largely successful in passing through inflationary costs, with a strong consumer providing issuers with the ability to offset higher costs through pricing and volume growt...

Low-interest rates have left investors with fewer fixed-income options to bolster portfolio yield. Although valuations are still modestly expensive compared with historical averages, fundamentals for high-yield bond issuers are also strong. With an average yield of around 6% and a...

With Russia’s invasion of Ukraine into its second week, the economic fallout is gradually coming into focus. In our view, it is highly likely that economic growth will slow in the US and globally, but less so in the U.S. We expect market volatility to remain elevated for an...

The most dramatic and immediate effect of the invasion and subsequent international sanctions is that local market Russian securities are effectively frozen. Emerging markets debt more broadly has traded well this year, in terms of spread, prior to the invasion. We believe the maj...

Emerging Markets are outperforming the rest of the world, due in large part to windfall profits in the commodities-exporting countries of South America and the Middle East. If you want to follow the money, this is a good place to start. Money has been flowing out of tech, consumer dis...

Russian debt, both hard currency and local currency, is largely shut down for trading. Prices for Russian government securities are pricing in a default scenario. The markets have dramatically repriced central bank expectations. For further details see: Russia Sanctions ...

As the world reels from the crisis, the blowback is rippling across the world economy and markets. The current risk premia analysis implicitly recommends managing expectations down for GMI and other global multi-asset-class portfolios. The mean reversion factor is estimated as the...

The peak of central bank tightening expectations has likely passed. Major economies will continue to experience positive growth. Biggest sectoral impacts will likely be in commodity markets. For further details see: Russia's Invasion: 3 Implications For Fixed Income

Events have moved quickly since our update on February 22. It’s unclear whether this is the shock and awe phase of a limited incursion or the beginning of a full-scale invasion that seeks regime change in Kyiv. USD/RUB touched 90 overnight before fading back to the mid-80s ...