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Interview with Michael C. Buchanan, Actifs High yield - Western Asset (Legg Mason)
What is your outlook on this asset class over the next 6 months?
The high-yield asset class had a fairly volatile summer making new cyclical highs in June, suffering steep losses in July only to rebound in August. As the market rallied in early summer, analysts spoke of investors in search of yield. July’s sell-off was attributed to an overbought market and August’s move as a correction. Western Asset views the summer’s price action a little differently. Default rates are at historically low levels and forecast to remain so for the next 12-18 months. This statement is supported by the fact that there is a very low level of high-yield debt...
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