For a little while now our view has been that high yield as an asset class is expensive. To the extent we own high yield we have been very selectively buying credits where we like the fundamentals and short-dated issuance where there is high certainty over cash flows. As a sign of weakness, new issues have been coming to market priced to perfection and aftermarket performance has been poor in many instances despite high levels of oversubscription. Now investor flows have turned negative too, especially in the US.
Adam Mossakowski, fund manager, Insight Strategic Bond Fund
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