It's fashionable to bash the high-yield sector (HYG, JNK), but UBS has a kind word to say. On a...

|By:, SA News Editor

It's fashionable to bash the high-yield sector (HYG, JNK), but UBS has a kind word to say. On a relative basis, valuation is still attractive, with yields 500 basis points higher than Treasurys leaving plenty of room to tighten. Issuer quality isn't as bad as reported, they say, with just 20% of new paper at CCC or less, vs. 35% in 2007.