AB: In High Yield, Expect Volatility, Not Crisis

Some people fear that rising interest rates may cause a crisis in US high yield. In our view, the logic doesn’t add up. We understand why some investors are anxious. After all, it’s been almost a decade since the Federal Reserve last raised rates, and these many years of cheap credit conditions have left high yield looking a bit pricey. But it’s no reason to retreat from high yield altogether

 

View:

In High Yield, Expect Volatility, Not Crisis