Fundamental research offers a guide to the risk that low oil prices pose to energy companies with high yield debt.
Fundamental changes in old industries, from gas to chemicals to telecommunications, are shaping the landscape of high-yield investment opportunities. As interest rates rise, bond prices fall. Lower-rated bonds may...
Aaron M. Cooper D. William Kohli Robert J. Kea, CFA Norman P. Boucher, Portfolio Manager, and Paul D. Scanlon, CFA Christian J. Galipeau Simon Davis and Shep Perkins, CFA Daniel Farrell David L. Glancy Daniel J. Graña Darren A. Jaroch David Morgan Putnam Fixed Income Team Ferat Ongoren Gerard P. Sullivan Jason R. Vaillancourt, CFA Jacquelyne J. Cavanaugh Onsel Emre, Ph.D. Joseph P. Joseph Jo Anne Ferullo, CFA Joykrishna Mahato Jeffrey B. Sacknowitz Katherine Collins, CFA, MTS Kevin F. Murphy D. William Kohli, Michael V. Salm, and Paul D. Scanlon, CFA Michael J. Atkin Matthew F. Beaudry Mike Dullaghan Michael V. Salm, Co-Head of Fixed Income; and Brett S. Kozlowski, CFA and Kevin F. Murphy, Portfolio Managers Michael P. Wands, CFA Michael V. Salm Christian J. Galipeau | Brendan T. Murray | Seamus S. Young, CFA, Investment Directors Paul D. Scanlon Putnam Global Asset Allocation Team Putnam Investments Putnam Tax Exempt Fixed Income Team Putnam U.S. Equities Team Putnam Portfolio Managers Robert M. Brookby Robert L. Reynolds Robert L. Salvin Michael V. Salm, Co-Head of Fixed Income, and Brett S. Kozlowski, CFA Sarah A. Marshall Paul D. Scanlon, CFA, Co-Head of Fixed Income | T.L. Tsang, CFA, Analyst Scott C. Sipple Steven W. Curbow Simon Davis Seamus S. Young, CFA Shep Perkins Robert L. Davis, CFA, Analyst, and Simon Davis Vivek Gandhi Walter D. Scully Izzet Yildiz, Ph.D., Analyst | Michael J. Atkin, Portfolio Manager | Jo Anne Ferullo, Senior Investment Director
Generous yield spreads and a low default rate on corporate debt give high-yield bonds attractive investment potential in today’s market. Lower-rated bonds may offer higher yields in return for...
A modest pace of economic recovery has helped to keep the corporate default rate below historical averages and provides favorable conditions for high-yield bonds. Lower-rated bonds may offer higher...
Spreads on high-yield bonds widened to attractive levels even as the expected corporate default rate has remained subdued.
We believe the sell-off in high-yield bonds actually represents an investment opportunity.