High-yield market default scenario ‘too pessimistic’

4 October 2020

Michael Scott, portfolio manager at Man GLG, believes high-yield markets are pricing in a default scenario that is too pessimistic, but may offer opportunities for yield-hungry investors. The trailing 12-month default rate currently sits around 5.6% according to Fitch Ratings, as markets react to the Covid-19 pandemic, but while Scott expects this figure to...