Loomis Sayles' Matt Egan issues a bit of a warning on high-yield, noting their only upside at...

|By:, SA News Editor

Loomis Sayles' Matt Egan issues a bit of a warning on high-yield, noting their only upside at this point is the coupon (not something to sneeze at). If prices rise any further, expect issuers to refinance into lower rates. The downside is defaults, and with the default rate as low as it currently is, they can only go in one direction.