Author: Just Summit Editorial Team
Source: Morgan Stanley
23 sec readExplore the same thread
US and European high yield markets continue to offer attractive income, but the backdrop is more selective than broad-based.
Credit fundamentals remain generally stable, yet higher borrowing costs and slower growth are testing weaker issuers.
In this environment, investors may find better opportunities in companies with strong cash flow, manageable leverage, and resilient business models.
Valuations can still support returns if defaults stay contained, but dispersion is likely to remain wide across sectors and regions.
For advisors and investors, the key is balancing yield potential with credit quality while staying alert to refinancing risk and economic uncertainty.
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