With US interest rates set to rise – Fed Chair Janet Yellen was almost demonstrative in saying December will see a slight increase and other analysts predicting multiple hikes in 2017 – will it impact the high yield investing market? No, says a November 14 report from Bank of America Merrill Lynch. Unlike the “Taper Tantrum,” the high yield bond market won’t get scared. One reason: international investors have few other choices – known by some as TINA for (there is no alternative). It will take a significant sell-off in Treasuries to impact the high yield bond market Calling…
BAML: High Yield Bonds Benefit As Foreign Investors Stuck In TINA
Mark Melin
Mark Melin is an alternative investment practitioner whose specialty is recognizing the impact of beta market environment on a technical trading strategy. A portfolio and industry consultant, wrote or edited three books including High Performance Managed Futures (Wiley 2010) and The Chicago Board of Trade’s Handbook of Futures and Options (McGraw-Hill 2008) and taught a course at Northwestern University's executive education program.