S&P Global’s Post

High yield bond investors are currently able to earn yields above 8.0% at a time when credit fundamentals in the asset class are solid and the Federal Reserve appears to be near the end of its interest-rate-hiking cycle. Thus, we believe the arguments in favor of high yield bonds are becoming increasingly more persuasive. Consider how much the U.S. high yield bond market has changed since the end of 2021. At that time, the average yield on B-rated bonds was just 4.7% versus 8.7% as of November 30, 2023. With the yield in the asset class approximately 200 bps above the ten-year average, investors now have the opportunity to earn attractive returns on a contractual basis.

The US Federal Reserve’s battle against inflation which triggered higher-for-longer interest rates means investors and borrowers alike are dealing with a slowdown in dealmaking, valuation discrepancies and higher borrowing costs. This has led to a pivot of buyout financings from public to private credit. https://lnkd.in/gyaeQv8i

Total returns for preferred securities top the bond market leaderboard year-to-date, followed by senior loans and high yield corporates. Learn why in our weekly commentary. #weeklyinsights

Total returns for preferred securities top the bond market leaderboard year-to-date, followed by senior loans and high yield corporates. Learn why in our weekly commentary. #weeklyinsights

Total returns for preferred securities top the bond market leaderboard year-to-date, followed by senior loans and high yield corporates. Learn why in our weekly commentary. #weeklyinsights

Total returns for preferred securities top the bond market leaderboard year-to-date, followed by senior loans and high yield corporates. Learn why in our weekly commentary. #weeklyinsights

Total returns for preferred securities top the bond market leaderboard year-to-date, followed by senior loans and high yield corporates. Learn why in our weekly commentary. #weeklyinsights

Total returns for preferred securities top the bond market leaderboard year-to-date, followed by senior loans and high yield corporates. Learn why in our weekly commentary. #weeklyinsights

Total returns for preferred securities top the bond market leaderboard year-to-date, followed by senior loans and high yield corporates. Learn why in our weekly commentary. #weeklyinsights

Total returns for preferred securities top the bond market leaderboard year-to-date, followed by senior loans and high yield corporates. Learn why in our weekly commentary. #weeklyinsights