HYLD News and Press, High Yield From 07/22/22

With economic growth beginning to slow, investors may be concerned about the potential impact on high-yield bonds, which have historically tended to be one of the first areas in capital markets to come under pressure. A look at high-yield issuance trends tells the story of a sector th...

As we enter the second half of 2022, predictions of a possible recession range widely as the key drivers of inflation shift from goods to commodities and services, notably housing. For bond investors, the sharp rise in the rate landscape has had an outsize impact across the board, wit...

For decades, globalization has been on an inexorable rise, a key pillar fueling economic growth, driving inflation and yields down, bolstering corporate profit margins and supporting an upward climb in market valuations. Over the past few years, though, cracks have started to develop ...

Bespoke, with their always-relevant research, put out (in my opinion) a very timely update on the improvement in high yield credit spreads on Wednesday, July 20th, 2022, which have fallen 75 bps in the last 3 weeks. Most retail investors don’t understand the importance of credi...

The global economy and financial markets have suffered a dreadful H1 2022, ravaged by a severe commodity shock, strict COVID-19 lockdowns in the world’s second-largest economy, and one of the most aggressive Fed tightening cycles in recent history. H2 looks equally tough. In it...

Based on monetary trends and the early reaction in the economy, we anticipate a slowing growth environment in the U.S., with rising recession risk that depends on the extent of frontloaded Federal Reserve interest rate hikes. Following the initial COVID shock in 2020, investment grade...

When credit conditions tighten and demand slows, corporations can struggle to secure cheap and adequate funding. There’s no approaching maturity wall, where a large share of bond issues matures and issuers are compelled to procure new debt at prevailing rates. When market v...

Investors are grappling with difficult decisions in the face of rising rates, stubborn inflation and slowing growth. Short-duration bonds capture 85% of the broad market yield but have historically exhibited approximately 35% less volatility. In summary, we believe short-duration ...

Despite recent market volatility, our base case outlook for U.S. non-investment grade credit defaults remains constructive. The foundation for a low-default environment has been long in the making. We believe current non-investment grade spreads more than compensate for what conti...

Last quarter, the Asset Allocation Committee adopted an underweight view on global equities and leaned more heavily into cash, commodities and other alternative, diversifying assets. The Committee’s views on real and alternative assets are unchanged this quarter. The Asset ...