The Chinese government has prioritised rebooting the country’s flagging economy and unveiled a dramatic stimulus package last month. But initial investor enthusiasm may be tapering off amid follow-up announcements that have been short on specifics.
Given the combination of still-elevated yields, solid fundamentals and technicals, and a resilient U.S. economy, IG corporate credit looks well-positioned for the months ahead.
With the favorable fundamental and technical backdrop firmly in place, and attractive income opportunities remaining in both bonds and loans, the case for high yield continues to be compelling.