Part II: What is your outlook for global high yield bonds?

clock • 11 min read

In the second of a two-part series, Investment Week asks managers for their views on high yield following the sector sell-off in Q3 and how they are gaining exposure.

Click here to read part one Parmeshwar Chadha, fixed income portfolio manager, Newton Investment Management Cautious approach We have a fairly cautious outlook for the high yield market. Our primary concern relates to the significant amount of commodity-related debt within the global high yield universe. For most issuers, current commodity prices make their capital structures unsustainable, leading to an inevitable increase in defaults and restructurings. With ratings agencies now revisiting the commodity sector, there is an increased likelihood of downgrades from investment grade...

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