- "While corporate credit spreads are close to their cyclical tights, they are still far from their all-time highs," says RBS, advising clients to overweight high-yield vs. investment-grade corporate paper. Far from "bubble-like," valuations are essentially fairly valued, says the team, and historically, December, has proven to be one of the strongest performance months.
- RBS does not what others have seen - namely the quality of high-yield issuance has dropped of late, notably showing up in the increase in covenant-light deals. At least some of this has to do with the increased Ba issuance, which, "by definition [has] less restrictive covenants."
- High-yield ETFs: HYG, JNK, HYS, HYLD, SJNK, PHB, SJB, ANGL, XOVR, UJB, QLTC, SHYG