On the back of the conflict in Europe, HY spreads have widened significantly. We expect that the European HY market will be affected more and for longer because of the proximity to Ukraine and the energy dependence with Russia.
YTD new issue volume for USD denominated HY bonds looks like Torschlusspanik which has impacted yield to flatten-out. Given the markets’ sharp repricing and the still opportune market conditions, investors may seek to add selective positions.