High-yield credit markets show signs of stabilising
UBS sees buyers returning to capitalise on the recent widening of credit spreads and prices in developed markets, encouraged by the strength of corporate balance sheets.
High-yield corporate bond prices and credit spreads in developed markets are showing some signs of stabilisation, indicating investors see value and are returning to the sector, claims UBS.
High-yield spreads on average range between 500 and 600 basis points over government bonds, depending on duration, but are still currently trading north of 700bp with absolute yields of around 8.5%, notes Craig Ellinger, Chicago-based global head of credit research and high-yield for UBS Global As…
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