Lower end investment grade offers yield value

The high-yield market is set for a significant re-rating, fund managers say, but it could be some ...

The high-yield market is set for a significant re-rating, fund managers say, but it could be some time until the rally takes place. Schroders and Baring Asset Management both see a rebound for the troubled sector on the horizon, following a period in which contagion from falling markets has pushed high-yield stocks down. Added to the bear scenario, which has exerted a significant drag on high yield, has been the high levels of defaults both in the US but in particular Europe where the bubble in telecommunications stocks has burst. Despite the potential for a bounce in high yield...