Baring Asset Management: Interest Rate Hike Is Not Expected To Hinder High Yield Bond Performance

After deleveraging, high yield companies have enough cash and prudent balance sheet management helps significantly reduce the default rate, which is conducive to the performance of the global high-yield bond market. Baring Asset Management believes that this trend will continue. Moodie predicts that the default rate will fall from about 2.1% to 1.6% in March next year, while standard & Poor's forecast default rate will further fall to 1.5% by the end of next year.