The regional bank crisis and its implications for bonds
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The Future of High Yield Spreads
High yield index is of higher quality than it has been in the past. But historically, high yield spreads tend to widen in recession to 600 or 800 basis points over treasuries. So we do still feel that there's a bit of complacency here. One other area I'll give a shout out to outside the core high quality fixed income is EM local debt. The story here is that central banks and EM started hiking well before developed markets. At this point, they have very high real yields and central banks are looking to pause there.
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