For Professional Clients and, in Switzerland, for Qualified Investors only. In Israel for Sophisticated Investors only.
English
  • English
  • French
  • German
en
  • en
  • fr
  • de
Filter by theme
Filter by date
Filter by boutique
Filter by theme
Filter by date
Filter by boutique
No posts matching your criteria
Clear theme
Clear all
No posts matching your criteria
Clear date
Clear all
No posts matching your criteria
Clear boutique
Clear all
For Professional Clients and, in Switzerland, for Qualified Investors only. In Israel for Sophisticated Investors only.
English
  • English
  • French
  • German
en
  • en
  • fr
  • de
© 2019. BNY Mellon Investment Management International Limited. All rights reserved.
IDEAS AND KNOWLEDGE TO INSPIRE YOUR INVESTMENTS THINKING
1 February 2018

High yield in 2018: Will we see more rising stars than fallen angels?

When global growth strengthens credit dynamics generally improve, especially for those most sensitive to the economic cycle. For high yield investors this creates an important investment theme as established companies get upgraded, causing the spreads of their debt relative to government bonds to tighten, presenting new opportunities.

 

In 2015 and 2016, companies in the oil and gas, and mining, sectors were affected particularly badly, but this turned around as commodity prices stabilised and then started to rise. Companies that controlled costs and paid down debt have since benefited. If the momentum in the global economy continues into 2018, then this powerful technical dynamic within the high yield market should continue.

 

Uli Gerhard – portfolio manager. Insight Investment, a BNY Mellon company

Please note the content on this website is for Investment Professionals only and should be shared responsibly. No other persons should rely on the information contained within this website.

 

Investment Managers are appointed by BNY Mellon Investment Management EMEA Limited (BNYMIM EMEA) or affiliated fund operating companies to undertake portfolio management activities in relation to contracts for products and services entered into by clients with BNYMIM EMEA or the BNY Mellon funds.

Subscribe to updates