Outflows continue to bite
Elevated yields and rising coupons look attractive, but credit spreads are relatively tight. This environment warrants both caution and optimism.
High-yield investors face a challenging backdrop, but attractive opportunities are starting to emerge amid the ongoing uncertainty, says Wellington Management’s Konstantin Leidman.
As central banks start to think about cutting interest rates, forecasts for a peak in credit default rates are not far behind — and could happen sooner than expected, says Wellington Management’s Alex King.
Exposure to high yield bonds
Developed markets face pressure