Are high yield bonds attractive after ‘violent' sell-off?

HIGH YIELD, POST SELL-OFF

OMAM's Christine Johnson highlights what she sees as the opportunities in the high yield corporate debt markets.

Financial markets are not completely divorced from reality. Where the two meet most transparently is company funding. In an environment of weak growth it is tough to make the argument for equities. Uncertainty tends to lead to cautious behaviour, and that does not result in strong growth. But everyday activities persist, people still go to the shops and get ill and put on clothes and live their lives - a little more cautiously perhaps, but activity has not ceased completely. Corporate bonds are the natural middle ground. There is still enough activity to allow them to make coupon paym...