BVTV: Demystifying US high yield – what’s driving YTD performance?

While 2018 has been a mixed year for bond investors so far, with many indices posting negative returns, the US high yield market has – perhaps surprisingly – managed to navigate its way through the turbulence. The sector’s intrinsically shorter duration than its investment grade counterpart may explain part of the divergence, but this is only part of the story.

Watch the latest episode of BVTV to find out what other factors have caused the performance of the two markets to decouple so far this year. Also – after a challenging first half of the year for the emerging markets, what do EM HY valuations look like today?

 

View the slides from this week’s episode

The value of investments will fluctuate, which will cause prices to fall as well as rise and you may not get back the original amount you invested. Past performance is not a guide to future performance.

Categorised as: BVTV

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