Many “experts” have recently warned of impending doom in the high yield bond market. High yield returns have certainly been impressive since the energy- and commodity-led sell-off of late 2015/early 2016, but our view of today’s economic and market landscape doesn’t lead us to the conclusion that the end is near. Rather, we find reasonable value in the market and used the March sell-off to add high yield exposure.
Ten years have passed since the financial crisis and many pundits are using this arbitrary anniversary to prognosticate the next great financial calamity. This week, CLOs take their turn in the spotlight.