Appetite for destruction: U.S. high yield
If the inversion in the yield curve is signaling recession and lower rates, the high yield market did not get the message. Tightening credit spreads have pushed further inside of the historic average and further away from cycle peaks. At current valuations, we continue to believe that outside of some special situations, there is not enough compensation for the risk. To learn more, read the July 2023 Canso Corporate Bond Newsletter.