Against a backdrop of stickier-than-expected inflation, higher-for-longer rates, and persistent geopolitical risks, what is the outlook for high yield bonds and senior secured loans? Global High Yield Portfolio Manager, Brian Pacheco, weighs in.
Episode Segments:
(03:29) – How the macro backdrop has changed for high yield this year
(06:28) – Why the Barings team is bullish today on loans
(08:37) – Contrasting the steady return profile of loans with higher duration assets
(10:14) – Where loans sit from a valuation perspective today
(11:39) – How higher rates may impact the default picture
(14:20) – Liability Management Exercises (LMEs) – why they matter
(17:02) – Why high yield bonds may offer more value than commonly perceived
(25:33) – Risks to watch: Accelerating inflation, term premiums, & geopolitics
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