Blog posts by Hamed Faquiryan
Jun. 14, 2018
The recent trend in high-yield market spreads appears to relate more to concern about rising rates than the potential for credit losses. However, investors should be aware that the impressive recent performance of short-dated high yield bonds and floating-rate leveraged loans may be reversed if credit conditions begin to deteriorate.
As central banks continue to keep interest rates at historic lows, many institutional investors have turned to leveraged loans for their attractive yields.