Global Value & Income Dispatch

Don't pay too much attention to the default rate. It's rating migration that matters. 

  • Adam Gittes
11 Dec 2019
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View PDF   Download PDF  
  • Default rates could misrepresent the health of the high yield market.
  • QE and looser covenants will prolong the inevitable bankruptcy filing while bond prices will move lower to reflect capital impairment risk. 
  • Lale Topcuoglu, JOHCM’s Head of Credit, details the three items that should be on your watch list. 


For professional investors only. This document should not be circulated to retail clients. Past performance is no guarantee of future performance. The value of investments and the income from them may go down as well as up and you may not get back your original investment. 

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