Becket: Why high yield now 'an oxymoron'

Thomas Becket, chief investment officer at Psigma Investment Management, has been selling down his exposure to high yield credit, taking the view the asset class is now priced for perfection.

The move comes as investors pull money out of high yield in the US for the third consecutive week, after a bullish start to the year for the asset class, and high-profile investors start betting against junk bonds. Since the financial crisis Becket has been long high yield credit in his Psigma Dynamic Multi Asset fund, but now has a 7.5% stake in the asset class, compared to 15% a year ago. He is planning to reduce his position still further, having already cut exposure to the Neuberger Berman High Yield Bond and UBS Short Duration High Yield funds. “High yield has become an oxymor...