Aegon: look for long-term survivors in high yield

Companies in the high-yield space which can survive until September will be good investment bets goi...

Companies in the high-yield space which can survive until September will be good investment bets going forward, says Aegon Asset Management. Phil Milburn, fixed interest manager, says there will be a spike in default levels this year as the majority of over-leveraged, weak companies get washed out of the market. However, that level of risk will even out as this high number of defaults will not be sustainable. "I expect the peak in 12 month default rates in late 2009 or Q1 of 2010. But any company that can survive the period from September 2008 to September 2009 is doing pretty well,"...