"Ten reasons why a buying opportunity in high yield is approaching" y una recomendación



Ten reasons:

1. Recent softness in economic data was magnified by temporary dislocations

 2. A slower growth environment alleviates commodity pricing pressure

 3. Corporate balance sheets are strong and credit fundamentals are still improving

 4. Q2 earnings reports in July-August are likely to be a positive catalyst

5. Fed policy will remain extremely accommodative for a prolonged period

6. Net supply will not overwhelm market demand, since the majority of new issue volumes are refinancing transactions

7. Recent refinancing activity leaves few near-term catalysts for defaults

8. New issue volumes will slow during choppy markets, and deal structures will be more investor friendly

9. Risk premiums on high yield remain high, despite low default risk

10. Demand will stay solid and will surge at wider yields

Un recomendación: