Experts warn of further defaults as CCC bond yields reach all-time lows

'Zombification' of real economy

Lauren Mason
clock • 3 min read
Valuations across the low end of the high-yield market are now stretched, some managers argue
Image:

Valuations across the low end of the high-yield market are now stretched, some managers argue

Current valuations among high-yield bonds leave "little margin for error" despite the fact there are "still some defaults to come", according to several investment professionals, who warn markets have become complacent as economies reopen and central banks remain accommodative.

The urge for caution follows data from Bloomberg and the ICE BofA index published last Monday (19 April), which found that CCC-rated bond yields have hit a record low of 8%. RLAM's Rutter: 'Treasure...

To continue reading this article...

Join Investment week

  • Unlimited access to real-time news, analysis and opinion from the investment industry, including the Sustainable Hub covering fund news from the ESG space
  • Get ahead of regulatory and technological changes affecting fund management
  • Important and breaking news stories selected by the editors delivered straight to your inbox each day
  • Weekly members-only newsletter with exclusive opinion pieces from leading industry experts
  • Be the first to hear about our extensive events schedule and awards programmes

Join now

 

Already an Investment Week
member?

Login

More on Bonds

Industry Voice Video: Wellington Global Impact Bond Fund

Celebrating the fund’s three-year anniversary

Celebrating the fund's three-year anniversary

Campe Goodman, CFA, Fixed Income Portfolio Manager and Paul Skinner, Investment Director at Wellington Management
clock 26 May 2022 • 2 min read
Partner insight: Taking on climate change through fixed income
ESG

Partner insight: Taking on climate change through fixed income

ESG challenges are complicated and diverse for many asset classes, and fixed income is no exception

Invesco
clock 23 May 2022 • 1 min read
Drawdown of 11.3%

Gilts suffer £150bn value dent in 2022

Fell 10% in four months to April 30

clock 18 May 2022 • 2 min read
Trustpilot