Experts warn of further defaults as CCC bond yields reach all-time lows

'Zombification' of real economy

Valuations across the low end of the high-yield market are now stretched, some managers argue
Valuations across the low end of the high-yield market are now stretched, some managers argue
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Current valuations among high-yield bonds leave "little margin for error" despite the fact there are "still some defaults to come", according to several investment professionals, who warn markets have become complacent as economies reopen and central banks remain accommodative.

The urge for caution follows data from Bloomberg and the ICE BofA index published last Monday (19 April), which found that CCC-rated bond yields have hit a record low of 8%. "Covid is far from over...

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