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April 2019 | Corporate Credit Views

US High Yield: Return Potential Arising from Demand Dynamics

Firm retail investor demand has been a large contributor to US High Yield corporate credit performance this year. Much of this demand is channelled through exchange traded funds (ETFs) which has resulted in performance dispersion between bonds from small and large issues, as only the latter tend to be eligible for ETF inclusion. In our view, there is potential for spreads on smaller bonds to tighten relative to larger bonds. They also tend to be less sensitive to sharp—and sometimes abrupt—changes in retail investor demand.


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April 2019 | GSAM Connect
US High Yield: Return Potential Arising from Demand Dynamics

Firm retail investor demand has been a large contributor to US High Yield corporate credit performance this year. Much of this demand is channelled through exchange traded funds (ETFs) which has resulted in performance dispersion between bonds from small and large issues, as only the latter tend to be eligible for ETF inclusion.

March 2019 | GSAM Connect
Keep Calm and “Carry and Roll” On

This month we focus on curves. In credit markets we outline how curve steepness can create return opportunities within the sector and within a particular rating cohort, namely BBB-rated bonds. On the macro front we discuss why we believe the business cycle signal implied by yield curve inversion is less powerful than in prior cycles.