Sector Views

Our Sector Team leaders share perspectives on performance characteristics, opportunities, and risks across a broad range of fixed-income asset classes.


 


August 31, 2021 | High-Yield and Bank Loan Outlook

Looking at Yields in High-Yield Credit

A properly diversified credit portfolio should have exposure to both high-yield corporate bonds and bank loans.


May 13, 2021 | High-Yield and Bank Loan Outlook

In the Recovery Phase of the Credit Cycle

Strong earnings growth, low default volumes, upward rating migration, and tighter spreads in the recovery phase of the credit cycle.


February 25, 2021 | High-Yield and Bank Loan Outlook

A Ripe Environment for Strong Credit Performance

Our positive 2021 economic outlook, combined with better-than-expected company fundamentals, supports strong credit performance and spreads.


November 06, 2020 | High-Yield and Bank Loan Outlook

Opportunities in Credit Amid Challenging Conditions

Credit spreads still have room to tighten, but default risk remains elevated in certain sectors.


August 19, 2020 | High-Yield and Bank Loan Outlook

The Impact of the Fed’s Corporate Credit Facilities

As a result of the Federal Reserve’s efforts to shore up credit markets, the leveraged credit sector has delivered stellar performance since the lows in March.


May 20, 2020 | High-Yield and Bank Loan Outlook

Reaching the End of the Runway

While the U.S. speculative-grade default rate could reach 15 percent in this cycle, the market is offering better entry points than seen in years.


February 11, 2020 | High-Yield and Bank Loan Outlook

The Relative Value Case for Bank Loans Over High Yield

Loans present an opportunity to move up the capital structure with better spreads and yields than high-yield corporate bonds.


December 23, 2019

Agency Mortgage-Backed Securities: Flight Risk

Prepayment risk for recently originated mortgages remains high as mortgage rates continue to fall.


December 23, 2019

Asset-Backed Securities and CLOs: Focus on High Quality, New Issue

We prefer short, senior CLO tranches and new-issue commercial and aircraft ABS.


December 23, 2019

Bank Loans: Ratings Migration Signals Trouble Ahead

Worrisome pace of downgrades in the leveraged loan market is likely to continue.