RelatedViewpoints

• Is High Yield in a Sweet Spot?

  High yield continues to benefit from supportive tailwinds—from an improving default picture to lower sensitivity to rising rates—and may be poised for strong performance as the recovery takes hold.

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• Riding the Refinancing Wave

  Private credit has fared well during this crisis, but the real test may come at the back end, say Barings’ head of private assets Eric Lloyd and CFO of Barings BDC Jon Bock.

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• ESG: Three Challenges High Yield Managers are Tackling Today

  From influencing company behavior to seeking better data disclosure, high yield managers are pushing the envelope when it comes to ESG.

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• Why the Distressed Debt Opportunity Looks Different This Cycle

  A surge in defaults and distressed opportunities seemed likely when COVID struck—but stimulus measures and creative financing solutions have reshaped both the opportunity set and the timing.

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• High Yield: Strong Tailwinds, But It May be a Bumpy Ride

  High yield has a number of supportive tailwinds at its back—from a more manageable default picture and less exposure to potentially rising rates to investors’ continued demand for yield. But uncertainties remain, suggesting a potentially bumpy path to recovery.

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• Distressed Debt: The Opportunities Surfacing in COVID's Wake

  Barings’ Stuart Mathieson and Bryan High provide insight into today’s distressed debt market, including their expectations for defaults, an overview of the competitive landscape, and where the next opportunities may emerge across the U.S. and Europe.

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• Three Reasons Loans May Be Poised for Strong Performance

  It’s not as simple as ‘when rates rise buy loans; when rates fall buy bonds.’ Indeed, a combination of several factors has set the stage for loans to potentially deliver attractive total returns going forward.

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• The Evolving Opportunity in Distressed Debt

  As the pandemic recedes, some companies may have a harder time managing higher debt levels than others—and as weaker issuers undergo restructurings or other stressed situations, there may be opportunities for investors to deploy more capital into distressed debt strategies.

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• CLOs: Triple C's and Market Unease

  Taryn Leonard and Melissa Ricco, Co-Heads of Barings’ Structured Credit Investment Team, discuss the recent loan market weakness, and how technical pressures are creating value opportunities in the CLO market.

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• High Yield: A Time to be Nimble

  In this Q&A, Martin Horne, Head of Global Public Fixed Income, discusses the state of high yield markets amid a late-cycle environment, and why it’s critical to be nimble and selective in order to capture points of relative value.

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• High Yield: Poised to Capture Relative Value

  Despite mounting uncertainty in the broader markets, high yield delivered broadly positive returns in Q3. As we continue to move through the late stages of a prolonged cycle, credit selection will be critical.

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• High Yield: Rates, Recessions and Relative Value

  While there is no shortage of risks to consider in today’s high yield markets—from ESG to the end of the credit cycle—Barings’ Martin Horne describes how taking a contrarian approach can help investors uncover pockets of value.

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• Are High Yield Investors Being Compensated for Risks?

  In the context of today’s fundamental backdrop and default outlook, spread levels suggest investors are being fairly compensated, relative to other points in the cycle, for the amount of risk they are taking.

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• Distressed Debt: Seeking Opportunity in Choppy Waters

  Stuart Mathieson, Head of Barings’ Global Special Situations group, and Bryan High, Co-Portfolio Manager of the strategy, discuss how the macro environment is impacting their outlook, and where they're seeing distressed debt opportunities today.

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• U.S. Loans: Challenged Market or Veiled Opportunity?

  With loan and bond yields currently comparable, we believe—in a somewhat contrarian view to the market—there is a good argument for investing in loans, particularly in the U.S., where the economy appears to be marginally stronger than in Europe.

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• Four Reasons Security Matters Right Now

  Amid the late stages of an elongated credit cycle, Martin Horne, Barings’ Head of Global High Yield, discusses four reasons why global senior secured bonds—a lesser known and perhaps underappreciated subset of high yield—could be an attractive option in the event of defaults.

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• High Yield: Identifying Value Amid Shifting Sentiment

  Despite the sharp turns in high yield markets over the past two quarters, companies ticked along without flinching—posting strong earnings over the course. David Mihalick, Barings’ Head of U.S. High Yield Investments, explains why.

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• High Yield Bonds & Loans: Where to Next?

  High yield markets roared back in the first quarter. Can market fundamentals and technicals support continued strength? And how should investors factor in risks ranging from possible recession, to ratings downgrades, to liquidity concerns? Barings’ David Mihalick weighs in.

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• High Yield: A Swift Rebound

  High yield bonds and loans posted a strong Q1 following the technically induced Q4 sell-off. With defaults still near historical lows, current spreads provide attractive risk-adjusted return potential.

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• The Potential Benefits of Global Senior Secured Loans

  In the current environment, senior secured loans are gaining traction for their potential to offer a blend of attractive yield and protection against both credit and interest rate risk.

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