In the second of a two-part series, Investment Week asks managers for their views on high yield following the sector sell-off in Q3 and how they are gaining exposure.
Click here to read part one Parmeshwar Chadha, fixed income portfolio manager, Newton Investment Management Cautious approach We have a fairly cautious outlook for the high yield market. Our primary concern relates to the significant amount of commodity-related debt within the global high yield universe. For most issuers, current commodity prices make their capital structures unsustainable, leading to an inevitable increase in defaults and restructurings. With ratings agencies now revisiting the commodity sector, there is an increased likelihood of downgrades from investment grade...
To continue reading this article...
Join Investment Week for free
Signup and gain exclusive members-only insights - all free of charge!
- 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
