‘…Valesi outlines a picture in which the high yield market continues to offer a more attractive risk/return profile than investment grade. In his view, the ECB’s recent monetary policy has redefined the relative convenience between the two asset classes: the high yield spread remains “around 300 basis points, well above investment grade which is around 80”, explains the manager. Valesi points out that, in addition to the yield differential, the reduced duration of the high yield segment, around 2.7 years compared to over 4 years for investment grade, is a further factor in favor in a scenario of still uncertain rates.’
