In today’s late expansion phase of the credit cycle, Matt Eagan, CFA®, Head of Full Discretion Team, Portfolio Manager, Loomis, Sayles & Company, is not forecasting a large increase of losses in the high yield bond market. In fact, he believes there are compelling buying opportunities to pursue.
Highlights in this video include:
- It appears to be a benign phase of the credit cycle, where losses from both downgrades and defaults in high yield bonds should be low.
- Trading is expected to be rangebound.
- Riskier areas of the high yield market may include office real estate because of the pandemic effect and the lower-quality area of the syndicated bank loan market.
- A compelling buy for high yield at recent risk-premium levels.