Fixed Income Outlook: Sector by Sector
A few weeks ago, I posted some thoughts on what’s ahead for fixed income in 2014. Here are a few thoughts on specific sectors. You can click here to read our overall outlook for fixed income in 2014.
Bank Loans + High Yield Bonds > Bank Loans Alone
Even after a bumper year of investor inflows, high yield bank loans underperformed high yield bonds in 2013. Flows into bank loans, a segment of the overall high yield fixed income market, were north of US$62 billion, and yet the total returns in the high yield bond market were better. Why didn’t…