On Monday, October 23rd, the Swiss website AllNews published an interview with Delphine Laloum, Credit & High Yield Analyst and Portfolio Manager at Ellipsis AM.
"Companies with a BB rating are less sensitive to interest rate increases than Investment Grade and offer an attractive yield, notes Delphine Laloum."
"In recent years, investors have often overweighted Investment Grade (IG) bonds. However, these securities lost 16% last year, and divesting from High Yield (HY) represents an opportunity cost. 'The BB segment within High Yield (HY) appears more compelling to us' "
"The market has an appetite for BB because the primary segment is dry."
"Unless there is a major geopolitical event, we should expect a tightening of spreads to the levels seen in September 2021."
Disclaimer: The information relating to the instruments or issuers mentioned in this article is for illustrative purposes only and does not constitute a buy or sell investment recommendation. At the time of publication of this article, the portfolios managed by Ellipsis AM may or may not be exposed to the issuers mentioned and the issuers may no longer be present in the portfolio at a later date. Future management decisions are not constrained by the statements and analyses reported and may even go in the opposite direction.