European high yield: Five things to look out for in 2017

Mike Della Vedova, portfolio manager of the T. Rowe Price European High Yield Bond fund, names five key metrics in the European high yield universe this year.

The fundamentals and technicals underpinning the European high yield market remain robust. However, as in 2016, volatility is likely to remain a prevalent theme - particularly given Brexit negotiations and elections in France, Germany and the Netherlands.  For us, the most important thing is to be credit selective as this will be the biggest determinant of absolute and relative returns in 2017. Below are our top five European high yield factors to watch this year. Technicals: Supportive factors remain We expect technical factors to remain positive in 2017. The default rate is expect...