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Guggenheim Macro Markets

Episode 54: Make Room for High Yield

Jun 14, 2024
Exploring high yield bonds with attractive yields, strong credit fundamentals, and market technicals driving constructive views on risk and opportunity. Analysis of trends like robust issuance, tight spreads, and high trading volumes. Insights on credit research process, sector performance, borrowing costs impact, and tightening spreads in the market.
26:22

Podcast summary created with Snipd AI

Quick takeaways

  • High yield bonds offer compelling entry point with historically attractive yields and healthy credit fundamentals.
  • Robust issuance and strong performance in high-yield market attract real money accounts and influence spread tightening.

Deep dives

High Yield Market Normalization Post-COVID

Businesses are adapting to post-COVID normalization, with shifts in supply chain, monetary policy, and consumer spending. The high yield market has shown resilience with low default rates due to businesses entering the market with strong credit metrics. Research focuses on anticipating credit stability and improvement despite some deteriorating metrics.

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