Linda Carter, CFA at Eaton Vance, explains why high quality companies with strong fundamentals are the best place to invest in the US high yield space.
Four years after the financial crisis, the high yield market continues to enjoy strong demand as investors search for greater yield. With global macro uncertainty clouding the outlook for economic growth and contributing to volatility, investors want to know where the high-yield market is headed next. Favourable fundamental and technical factors are positive for high yield bonds, although a risk-adjusted approach to investing is needed to take advantage of short-term dislocations in the market due to macro concerns. Demand High yield bonds are in demand as investors hunt for potenti...
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