High yield market to outperformif interest rates rise

Revelations of accounting misdeeds among a number of large multinational global corporations, including the high-profile scandals at Enron and WorldCom, have dented investor confidence in many asset classes. Sentiment has plummeted and global equity markets have tumbled. Meanwhile, the negative impact of these accounting misdemeanours has similarly been felt within the fixed income markets. While government bond markets have remained a relative safe-haven, the backdrop of corporate uncertainty has spilt over into both the investment grade market and even more so into the high-yield mar...