Another approach to default risk on European High Yield
Points to remember:
The risk premium sufficiently compensates for default risk, especially in the BB segment.
The compression of B-BB risk premiums encourages us to favour the BB segment. We consider this segment within Ellipsis High Yield Fund as core in its allocation.
Default risk has never been so diversified in the asset class.
Michael Longeard, manager specialized in high yield within the Convertibles & Credit division of Ellipsis AM, gives Investir.ch an update.