Leveraged Credit Market Review & Outlook 2022
Our high yield investment team’s view on the tumultuous start to 2022 and what may lie ahead
Sifting Through “Junk” in Search of “Gems”
In this mid-year Leveraged Credit Review & Outlook, our high yield team explains why they believe this is one of the most attractive environments to invest that they have seen for some time.
Download the Leveraged Credit Mid-Year Review 2022
Mid-Year Highlights
- Prices of high yield bonds declined significantly during the first six months of the year. In part, this price decline was in response to heightened inflation, a rise in U.S. Treasury yields, and a dramatic shift in Fed policy.
- We believe that the current environment presents discerning investors with an opportunity to capitalize on selling pressure brought on by this year’s volatility.
- Increased volatility has created not only a more attractive entry point into the high yield bond market, but also exposed buying opportunities across leveraged credit, according to our analysis.
In our view, even if spreads widen or yields increase further, today’s environment offers a compelling entry point for generating strong long-term returns within the leveraged credit market.
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