Debt refinancing the catalyst to activity in high-yield markets

The strength of recovery in the US credit market through 2009 was nothing short of spectacular.

For high yield in particular, few could have predicted the unprecedented 50%+ returns, given the uncertainty surrounding the sector at the height of the financial crisis. However, such strong performance, and the speed of the sector’s recovery, has led many to suggest US high yield has run its race, with little more to offer. Certainly, some weaker-than-expected US economic data, (payroll growth, retail sales, housing activity) recently has raised investor concerns about the strength of US economic recovery. However, other less widely followed gauges such as regional manufacturing ...