– EMD yield spreads to comparable Treasuries are more attractive than they have been in over a year.
– However, the potential for additional moderate dollar strength, rising rates, and trade disruptions remain headwinds for the asset class.
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Source:
LPL Research, Bloomberg 05/21/18
Important Disclosures:
Option-adjusted spreads (OAS) represent the difference between the index yield and the yield of a comparable maturity Treasury. The OAS can be used to measure the risk levels markets are placing on high-yield bonds.
Yield to worst is defined as the lowest potential yield that can be received on a bond without the issuer actually defaulting and reflects the possibility of the bond being called at an unfavorable time for the holder.
The opinions voiced in this material are for general information only and are not intended to provide specific advice or recommendations for any individual.
Tracking #1-734115 (Exp. 05/19)