The Risks of Defaults in the High Ield Market

We're not baking in a lot of default risk in the high eld market right now, based on current spreads of four 50. Even if we do have a down turn and growth slows substantially, the high ield market is unlikely to xperience the uptickan defaults that we're kind of used to seeing in previous cycles. Energy and metals and mining and kind of natural resources are also in a much better position now relative to previous cycles. And those are historically the vulnerable sectors. We actually like, within i g that sweet spot of triple b rated firms. Those are companies that we believe are committed to staying investment grade but are likely going to behave in a more conservative fashion than their highly