Author: Just Summit Editorial Team
Source: Morgan Stanley
24 sec readExplore the same thread
US and European high yield markets continue to offer attractive income, but the backdrop is more selective than it was a year ago.
Credit fundamentals remain broadly resilient, yet higher refinancing costs and slower growth are starting to pressure weaker issuers.
In this environment, investors may find the best opportunities in companies with strong cash flow, manageable leverage, and limited near-term maturities.
Spreads can still provide value if economic conditions stay stable, but volatility may rise if inflation or policy uncertainty reaccelerates.
For advisors and investors, the key is to balance carry potential with careful credit selection and attention to downside risk.
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