Author: Tim Dowling, Head of Credit Investments and Lead Portfolio Manager Global High Yield at NN Investment Partners
Following the dramatic sell-off in the first six weeks of 2016, high yield has provided good returns to those investors with the willingness to stay the course. Even considering the market strength since the bottom experienced on February 11, we see the high yield market continuing to rebound in coming months after being oversold. However, we believe that the low liquidity conditions are not about to reverse, and that investors need to pay very close attention to how low liquidity will impact their returns as they choose between the various instruments available in high yield.
