High-yield companies appear to have the liquidity necessary to weather the ongoing economic uncertainty, Moody’s Investors Service says in a new report. The rating agency reports that its Liquidity-Stress Index (LSI), which measures corporate liquidity, continues to hold at historically low levels. The index, which falls when speculative-grade corporate liquidity appears to improve and rises […]
Moderate default rate forecast over the next year
Geof Marshall, vice president, portfolio management and portfolio manager at CI Investments Inc. and co-portfolio manager for CI Signature High Income Fund, explains his investment strategies for high yield corporate bonds and why they can mitigate risks and offer efficient returns in the current macro economic environment. He spoke at the TMX Broadcast Centre in Toronto.
The European crisis didn’t lead to a large number of defaults during 2011
Liquidity-stress index nears record-low
Fund targets 60% high-yield bonds and 40% emerging markets debt
Europe’s sovereign-debt crisis and improvements in the U.S. send mixed signals to bond market
Fund manager calls the yields on emerging market bonds very attractive
The rate is probably at the bottom of default cycle right now