Swiss Economicblogs.org
High yield bonds are vulnerable to a rise in spreads from their current low levels. Default levels could also rise for US high yield.US and euro high yield have performed strongly between Donald Trump’s election as US president and the end of June. However, our analysis of fair value suggests there is potential for a widening of spreads and a rise in default rates ahead.Our multi-factor model of high-yield corporate spreads enables us to forecast US and euro high-yield spread levels based on...
Read More »Risks for high-yield bonds are rising
