Commodity carnage: how exposed are high yield markets?

M&G's Tomlins takes a look at the impact of the recent sell-off

James Tomlins, manager of the M&G European High Yield Bond fund, discusses the impact of the recent sell-off in commodities and emerging market equities on global high yield bonds.

We have seen a fairly swift and deep sell off in both commodities and emerging market equities over the past few months. The recent moves are now feeding through into a more broad-based sell off in risk assets. It appears an opportune time to take stock and see how exposed the various high yield markets are to these trends. China cuts interest rates; FTSE rebounds 3% By definition the Emerging Market index is the most exposed, but what is perhaps more interesting is the relative exposure within other markets. The US High Yield market has very little direct exposure but due to a diff...