High Yields Debt Investors are huat big big as Fed Delay Raye Cut

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‘Priced to Perfection’ Starts to Unravel as Debt Markets Get Jitters​

• Investors have begun to yank money from high-yield funds
• High-yield headed for biggest loss since September 2022

John Williams
Photographer: Victor J. Blue/Bloomberg
By Ronan Martin
April 21, 2024 at 3:00 AM GMT+8

Credit investors got a dose of economic and geopolitical reality this week as hawkish comments from central bank officials about borrowing costs and tensions in the Middle East sent jitters through debt markets.

The pullback was triggered in part by comments from Federal Reserve Bank of New York President John Williams, who said there’s no rush to cut interest rates and it’s possible that economic data could even warrant an increase if inflation persists.

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[k1976]

1month ago....

A Junk Bond Bear Isn’t Buying ‘This Time It’s Different’ Mantra​

• Speculative-grade outperformed investment grade this year
• Vontobel strategist prefers Treasuries to high-yield debt

By Finbarr Flynn
March 13, 2024 at 9:22 AM GMT+8
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Junk bonds are beating less risky debt almost everywhere in 2024, but a Vontobel Holding AG strategist says he’s steering clear of the asset class.

Bets the US economy will break with historical precedent and avoid a recession despite the Federal Reserve’s high borrowing costs have spurred a rally in high-yield corporate notes. Bloomberg’s global speculative grade credit index has returned 1.3% so far this year.

With defaults expected to decline, several fund managers have said they see the good performance continuing.
https://www.bloomberg.com/tips/