Defaults

Defaults Wont Rock High Income?

Worried about rising defaults? Here are two good reasons not to be. First, even in 2009’s high-default environment, when the default rate topped 10%, US high yield delivered an astonishing 59% rate of return. Second, for 2018, we expect the high-yield default rate to rise to just 2.5%. That’s in line with the average over the past 10 years. So don’t add high defaults to your list of worries.

[REITs]

Check out our H2 hedge fund letters here.

Defaults

There is likely to be some volatility ahead, however, for income-oriented investors. We believe that the best approach for generating income in this kind of environment is a diversified, global multi-sector high-income strategy. Because while there are risks on the horizon, there are opportunities too.

The views expressed herein do not constitute research, investment advice or trade recommendations and do not necessarily represent the views of all AB portfolio-management teams.

Article by Alliance Bernstein

LEAVE A COMMENT


Saved Articles
X
TextTExtLInkTextTExtLInk

The Life and Career of Charlie Munger

Charlie is more than just Warren Buffett’s friend and Berkshire Hathaway’s Vice Chairman – Buffett has actually credited him with redefining how he looks at investing. Now you can learn from Charlie firsthand via this incredible ebook and over a dozen other famous investor studies by signing up below:

  • Learn from the best and forever change your investing perspective
  • One incredible tidbit of knowledge after another in the page-turning masterpiece of a book
  • Discover the secrets to Charlie’s success and how to apply it to your investing
Never Miss A Story!
Subscribe to ValueWalk Newsletter. We respect your privacy.

Congrats! Are you a smart person?

We have an exclusive targeted for being a sophisticated and loyal reader.

Sign up for ValueWalkPremium today and get our exclusive content for 35% off.

Use coupon code vip19 or click on the button below

Limited time offer only ENDS 12/31/2019 or after next 25 subscribers take advantage whichever comes first – please do not share this discount with others

 

0